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When in Mumbai, check your SENSEX

By Emerging Money July 11, 2012, 03:00:50 PM EDT

The SENSEX is the primary benchmark index of the Bombay Stock Exchange (BSE), one of India's two principal exchanges.

[caption id="attachment_59462" align="alignright" width="300" caption="The Bombay Stock Exchange"] Image courtesy Niyantha Shekar: http://www.everystockphoto.com/photographer.php?photographer_id=29059 [/caption]

The SENSEX includes 30 of the exchange's largest and most liquid companies, comprising about 40% of the BSE's total market capitalization. The SENSEX is calculated with reference to April 1, 1979 using the public float of its constituent companies.

The BSE also publishes other indices that are based on industry, market capitalization, and currency (Indian rupees or dollars.)

The Bombay Stock Exchange has a market capitalization of $1 trillion (14th in the world) slightly more than its competitor National Stock Exchange of India (NSE). But its trading volume of $120 billion is only one-fifth of NSE's level.

India ( PIN , quote ) has a GDP of over $4.4 trillion on a purchasing power basis, making it the world's third largest economy after the United States and China. But income per capita is less than half of China's level. In trying to fight off worries of high inflation, India has recently seen a significant decline in GDP growth and the possibility of losing the investment grade status on its debt.

 

 




The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.


This article appears in: Investing, International, Stocks

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