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Understanding the Sensex: Your Guide to India’s Stock Market Benchmark

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In the world of finance and investing, there are many terms and indices that might sound intimidating at first, but they play a crucial role in understanding the dynamics of the financial markets. One such term is “Sensex.” If you’ve ever wondered what Sensex is, how it works, and why it matters, you’re in the right place.

Understanding the Sensex: Your Guide to India's Stock Market Benchmark

What is SENSEX?

SENSEX, short for the Stock Exchange Sensitive Index, is the benchmark stock index of the Bombay Stock Exchange (BSE) in India. It is a barometer of the Indian economy, monitoring the performance of 30 major and highly traded stocks on the BSE. The SENSEX index reflects the overall health of the stock market and provides valuable insights for investors by indicating trends in the broader economy. It was introduced in 1986 with a base value of 100, and since then, it has become a key reference point for tracking market movements.

SENSEX Meaning: The SENSEX helps investors measure the success or decline of the stock market, and it is calculated using the free-float market capitalization method. This method ensures that only shares available for public trading are considered. When the SENSEX rises, it means the underlying stocks are performing well, signaling confidence in the market. Conversely, a fall in the SENSEX indicates caution or pessimism.

Investors can use the SENSEX Index to track the economic performance of the country as well as make informed investment decisions. Companies listed on the SENSEX must meet several criteria, including market capitalization, liquidity, and sector representation, ensuring that the index represents a diverse cross-section of the Indian economy.

How Does the SENSEX Work?

The SENSEX, or Stock Exchange Sensitive Index, is India’s oldest stock market index, created to measure the overall performance of the country’s economy through the stock prices of the top 30 companies listed on the Bombay Stock Exchange (BSE). Established in 1986, the SENSEX has become the go-to indicator of market sentiment and economic trends, not only in India but also for international investors. The SENSEX reflects the health of the Indian stock market by monitoring the price movements of these prominent companies, which are selected from various sectors to offer a balanced representation of the country’s economic activities.

What is the SENSEX Index and Why is it Important?

The SENSEX Index serves as a barometer of the Indian stock market. It is widely used as a benchmark to gauge the performance of India's economy. By tracking the top 30 companies, the SENSEX provides investors and analysts with insights into the general economic health and investor confidence. These companies represent diverse industries such as technology, finance, healthcare, and manufacturing, making the index a good representation of the overall market. When the SENSEX rises, it signals a period of growth and optimism among investors, while a decline in the index may indicate caution or concerns over economic or global conditions.

One of the primary reasons the SENSEX is important is its ability to reflect broad market trends. It is an indicator used by both institutional and retail investors to assess the performance of their portfolios relative to the broader market. It also plays a critical role in helping foreign investors understand the Indian economy. Investors globally look to the SENSEX to determine the level of confidence in the Indian market and make informed decisions about investing in the region.

How is the SENSEX Calculated?

The SENSEX is calculated using the free-float market capitalization method. Free-float refers to the portion of a company’s shares that are available for trading in the open market, excluding those held by insiders or other restricted groups. This calculation method was adopted in 2003 to make the index more reflective of market realities, as it provides a more accurate picture of the shares that are actively traded.

The formula for calculating the SENSEX is:

SENSEX = (Free-float market capitalization of 30 companies / Base market capitalization) * Base value

The base year for the SENSEX is 1978-79, and the base value is 100. This methodology ensures that even when the companies in the index change, the SENSEX remains comparable over time. In this context, market capitalization is defined as the total value of a company’s shares based on its current share price. The free-float market capitalization, therefore, refers to the market value of shares that are publicly traded and available for investors to buy or sell.

The Role of the Free-Float Method

Before 2003, the SENSEX was calculated using a full-market capitalization method, which considered the total market value of all of a company's shares, regardless of whether they were actively traded or not. However, this method was found to be less reflective of market conditions because it did not take into account the liquidity of a company’s stock. The adoption of the free-float capitalization method marked a significant shift. This method adjusts the SENSEX based on the liquidity of stocks, which is important for accurately reflecting the amount of shares that investors are actively buying and selling.

The free-float factor is a critical component of this calculation. It represents the proportion of a company’s shares that are available for trading relative to its total shares. For example, if a company has 100 shares in total, and 80 of these shares are available for public trading, the free-float factor would be 0.8. This factor is then applied to the market capitalization to determine the weight of that company in the SENSEX.

How Are Companies Selected for the SENSEX?

The selection of companies included in the SENSEX Index follows strict criteria set by the S&P BSE Index Committee. To ensure that the SENSEX remains representative of the Indian economy, companies must meet the following requirements:

  1. Listing on the BSE: Only companies listed on the Bombay Stock Exchange are eligible for inclusion in the SENSEX. This ensures that the index represents the core of India’s stock market.

  2. Large or Mid-Sized Companies: Companies must have a significant market capitalization to be considered. Typically, only large-cap or mid-cap companies make it into the index, ensuring that the companies are financially strong and well-established.

  3. Liquidity: The stocks included in the SENSEX must be highly liquid, meaning they are frequently traded in the market. This liquidity ensures that the index reflects real-time market conditions and investor sentiment.

  4. Strong Core Business: Companies must generate a substantial portion of their revenue from their core operations. This requirement ensures that the companies in the index are stable and well-positioned within their industries.

  5. Sector Representation: The SENSEX aims to maintain a balance across various sectors of the economy, such as finance, technology, healthcare, and energy. This sectoral balance ensures that the index offers a comprehensive picture of the Indian economy.

What Does the SENSEX Indicate?

The SENSEX is more than just a collection of stock prices—it serves as a snapshot of the country’s economic health and investor sentiment. When the SENSEX rises, it indicates a period of growth and optimism. Investors are willing to pay higher prices for stocks because they believe that the companies are performing well and that the economy is on an upward trajectory.

On the other hand, when the SENSEX declines, it suggests a period of uncertainty or pessimism. This could be due to economic issues, geopolitical tensions, or even global market trends. For example, during the 2008 global financial crisis and the 2020 COVID-19 pandemic, the SENSEX saw significant declines as investor confidence plummeted.

What is SENSEX?

The SENSEX, or Stock Exchange Sensitive Index, is the benchmark stock index of India, representing the 30 largest and most actively traded companies listed on the Bombay Stock Exchange (BSE). Launched in 1986, it is a key indicator used to track the performance of the Indian stock market and is a measure of the overall health of the economy. The SENSEX index is calculated using the free-float market capitalization method, where only shares available to the public for trading are considered. This method provides a clear and accurate picture of market conditions.

The SENSEX meaning can be understood by considering it as a pulse of the Indian economy. It reflects investor sentiment by capturing stock price movements of major industries, including finance, technology, energy, and manufacturing. A rise in the SENSEX suggests market optimism, while a fall indicates economic concerns. As a result, the SENSEX is a critical tool for investors and analysts in evaluating both the short-term and long-term performance of the Indian stock market.

By regularly monitoring the SENSEX index, investors can make informed decisions about their investment strategies, ensuring they stay aligned with prevailing market trends and economic conditions. Furthermore, the index acts as a benchmark for various mutual funds and exchange-traded funds (ETFs) that aim to replicate the performance of the top companies listed on the BSE.

How to Invest in SENSEX?

Investing in SENSEX, the benchmark index of the Bombay Stock Exchange (BSE), is a great way to gain exposure to India’s top 30 companies. There are multiple ways to invest in SENSEX:

  1. Direct Stock Investment: You can buy shares of individual companies that constitute the SENSEX directly via a Demat and Trading Account. This approach requires research and active management but allows investors to tailor their portfolio to the SENSEX Index.

  2. Index Funds: These funds mimic the performance of the SENSEX by holding shares in the same companies in the same proportion. This is a passive investment method that tracks the overall performance of the SENSEX without needing active management.

  3. Exchange-Traded Funds (ETFs): SENSEX ETFs are traded on the stock exchange like shares and replicate the index's performance. These offer high liquidity and low costs, making them ideal for investors looking for a flexible entry into the SENSEX Index.

  4. Mutual Funds: Many mutual funds focus on large-cap companies, which often include SENSEX constituents. These funds are professionally managed and can provide broader diversification, albeit with slightly higher fees.

Investing in SENSEX allows you to benefit from the growth of India’s leading companies. It’s an excellent option for both seasoned investors and beginners seeking exposure to stable and financially strong businesses. Whether through direct stock purchases, index funds, or ETFs, you can align your portfolio with India’s economic growth.

Milestones of SENSEX India

Timeline

Events

Early 90s to the end of the 20th century

Since its inception, SENSEX reached the 1000-point milestone on 25th July 1990, closing at 1001.

In 1991, the introduction of several liberal economic reforms contributed to the SENSEX surpassing 2000 points for the first time in 1992.

In 1992, the Harshad Mehta scam caused a massive sell-off of SENSEX shares.

In 1999, the index crossed the 5000-point mark for the first time, ushering in the new century.

Early 21st century to mid-2000s

The IT boom pushed the index to cross 6000 points in 2000.

In 2004, the index briefly touched 6026.59 points.

2005 saw the SENSEX cross 7000 points due to significant growth in the Reliance group. By 2007, it leaped to 20,000 points.

2010s to present

Post the 2008 financial crisis, the SENSEX steadily recovered and crossed 21,000 points in 2010.

By 2019, the index breached the 40,000 mark.

SENSEX and Your Investments

The SENSEX plays a critical role in shaping your investment decisions. As India’s benchmark index, it reflects the performance of the 30 most financially robust companies listed on the Bombay Stock Exchange (BSE). When the SENSEX rises, it signals positive market sentiment, making it an ideal time for investors to consider increasing their holdings in large-cap stocks.

Investing in the SENSEX Index offers a balanced portfolio exposure across sectors such as technology, finance, and manufacturing. You can invest in SENSEX through Index Funds, ETFs, or by purchasing individual stocks that make up the index, helping diversify and minimize risks.

Major Plunges in SENSEX Stocks

The SENSEX has witnessed several major declines over its history:

  • On 21st January 2008, the index dropped by 1408 points due to the global financial crisis, marking its largest single-day fall.

  • In 1992, the Harshad Mehta scam led to massive sell-offs and a sharp plunge in stock prices.

  • The COVID-19 pandemic also triggered a significant decline in March 2020, reflecting global market uncertainties.

These events serve as a reminder of the volatility of the stock market and the need for long-term strategies to navigate such fluctuations.

What is Sensex?

The Sensex, short for the Sensitive Index, is a stock market index in India. To put it simply, it’s like a giant scoreboard that tracks the performance of some of the biggest and most influential companies listed on the Bombay Stock Exchange (BSE). The companies listed on the Sensex are referred to as “blue-chip” companies because they are known for their stability, large market capitalization, and widespread presence in the Indian economy.

Why Does Sensex Matter?

The Sensex is not just a bunch of numbers; it’s a reflection of the Indian economy and provides valuable insights into how businesses are performing. Here’s why it matters:

  • Economic Barometer: Think of the Sensex as a barometer that measures the health of the Indian economy. When the Sensex rises, it suggests that businesses are generally doing well, which often correlates with a thriving economy.
  • Investment Indicator: Investors, both big and small, use the Sensex as a benchmark to gauge how their investments are performing. When the Sensex goes up, it’s a good sign for investors as it indicates growth in the market.
  • Confidence Booster: High Sensex numbers often boost investor and consumer confidence. When people see the stock market doing well, they tend to feel more positive about the economy, which can lead to increased spending and investments.

Additional Read: Nifty 50 Guide

How is Sensex Calculated?

The Sensex is not a simple average of all the stock prices; it’s a bit more sophisticated than that. Let’s break down various terms:

  • Free-float Market Capitalization: Free-float market capitalization only considers the shares that are available for trading in the market, excluding shares held by promoters, government, and other entities that are not actively traded.
  • Weighted Methodology: In Sensex, companies are not given equal weight. The bigger companies have a more significant impact on the index. So, if a large-cap company’s stock price goes up, it has a more substantial effect on the Sensex compared to a small-cap company.

In simple terms, Sensex gives more importance to the big players and how they are performing in the market.

The Sensex Components

The Sensex comprises 30 carefully chosen blue-chip stocks. These stocks belong to various sectors, making the index diverse and representative of the broader market. Some of the sectors typically represented in the Sensex include finance, information technology, healthcare, and consumer goods.

Some of the well-known companies on the Sensex include Tata Consultancy Services (TCS), Reliance Industries, HDFC Bank, and Infosys. These companies are the giants of the Indian stock market and are often used as indicators of its overall performance.

Sensex Performance and What It Tells Us

The Sensex is a daily barometer of the Indian stock market, and its performance can tell us a lot about the current financial landscape. Here are a few key insights we can gain from Sensex movements:

  • Bull Market vs. Bear Market: When the Sensex is on an upward trajectory, it indicates a bull market, characterised by rising prices and optimism. Conversely, a declining Sensex signifies a bear market, marked by falling prices and pessimism.
  • Investor Sentiment: The Sensex can reflect investor sentiment. Positive news, such as strong corporate earnings or economic growth, can drive the Sensex higher. On the flip side, negative news can lead to a decrease in the Sensex.
  • Market Volatility: Sharp fluctuations in the Sensex can indicate increased market volatility. This could be due to global events, economic data releases, or company-specific news.
  • Economic Health: A consistently rising Sensex may suggest a healthy and growing economy, while a declining Sensex can be a warning sign of economic troubles.
  • Long-Term Trends: By analysing the historical performance of the Sensex, investors can identify long-term trends in the Indian stock market.

Sensex and Your Investments

If you’re an investor or thinking about entering the world of investing, it’s important to understand how the Sensex can impact your financial decisions. Here’s what you need to know:

  • Benchmark for Performance: Many mutual funds, exchange-traded funds (ETFs), and investment portfolios are benchmarked against the Sensex. If a fund consistently outperforms the Sensex, it can be a good indicator of strong fund management.
  • Diversification: The Sensex represents a diverse range of sectors. Diversifying your investments across these sectors can help reduce risk and increase the potential for returns.
  • Volatility Awareness: Be prepared for market volatility. The Sensex can experience sharp fluctuations, and it’s important not to make impulsive investment decisions based solely on short-term movements.
  • Long-Term Perspective: Investing in the stock market, whether through individual stocks or mutual funds, is generally a long-term endeavour. Don’t get swayed by daily or weekly Sensex movements; instead, focus on your long-term financial goals.

Wrapping Up

In a nutshell, the Sensex is a significant indicator of the Indian stock market’s health and performance. It represents a carefully selected group of top companies, making it a valuable tool for investors and economists alike. By keeping an eye on the Sensex and understanding its movements, you can make more informed investment decisions and gain insights into the overall economic landscape of India.

So, the next time you see a news headline about the Sensex hitting a new high or low, you’ll know that it’s not just a number but a reflection of the complex and dynamic world of finance and economics.

Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.

This content is for educational purposes only.

For Research Disclaimers Click Here: https://bit.ly/3Tcsfuc

Sources: https://www.business-standard.com/about/what-is-sensex

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Frequently Asked Questions

How does SENSEX work?

Answer Field

The SENSEX works by tracking the free-float market capitalization of its 30 constituent companies. This means the index considers only the shares available for public trading, ensuring a more accurate reflection of the stock market’s current value.

Why is SENSEX used?

Answer Field

SENSEX is used to gauge investor sentiment and economic trends in India. It acts as a reliable indicator for market performance, helping both individual and institutional investors make informed decisions based on the movements of key companies in the economy.

Why does the SENSEX fluctuate?

Answer Field

The SENSEX fluctuates due to changes in the stock prices of its constituent companies. These movements are influenced by various factors, such as corporate earnings, global events, economic policies, and investor sentiment, which all contribute to market volatility.

How do I purchase SENSEX shares?

Answer Field

To invest in SENSEX, you can either buy shares of the individual companies listed in the index or invest in Exchange-Traded Funds (ETFs) or Index Funds that track the SENSEX. These funds replicate the index's performance, offering diversification.

What is the full form of SENSEX?

Answer Field

The full form of SENSEX is Stock Exchange Sensitive Index. It is India’s oldest and most recognized stock market index, created to measure the performance of the top companies listed on the Bombay Stock Exchange (BSE).

Which is better: SENSEX or Nifty?

Answer Field

Both SENSEX and Nifty are key indices in India, with SENSEX representing 30 top companies on the BSE and Nifty tracking 50 companies on the National Stock Exchange (NSE). Choosing between them depends on your investment goals and preferences.

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Bajaj Financial Securities Limited ("Bajaj Broking" or "Research Entity") is regulated by the Securities and Exchange Board of India ("SEBI") and is licensed to carry on the business of broking, depository services and related activities. There were no instances of non-compliance by Bajaj Financial Securities Limited on any matter related to the capital markets, resulting in significant and material disciplinary action during the last three years. This research report has been prepared and distributed byBajaj Financial Securities Limited in the capacity of a Research Analyst as per Regulation 22(1) of SEBI (Research Analysts) Regulations 2014 having SEBI Registration No. INH000010043. 

DISCLAIMER

This e-mail/ short message service (SMS) may contain confidential, proprietary or legally privileged information. It should not be used by anyone who is not the original intended recipient. If you have erroneously received this message, please delete it immediately and notify the sender. The recipient acknowledges thatBajaj Financial Securities Limited or its holding and/or associated companies, as the case may be, are unable to exercise control or ensure or guarantee the integrity of/over the contents of the information contained in e-mail /SMS transmissions and further acknowledges that any views expressed in this message are those of the individual sender and no binding nature of the message shall be implied or assumed unless the sender does so expressly with due authority of Bajaj Financial Securities Limited. This message is not intended as an offer or publication or solicitation for distribution for subscription of or purchase or sale of any securities or financial instrument(s) to anyone in whose jurisdiction such subscription etc. requires prior local regulatory clearance or is contrary to the local laws of the land in any manner or as an official confirmation of any transaction. Before opening any attachments, please check them for viruses and defects. 

This service / information is strictly confidential and is being furnished to you solely for your information. This information should not be reproduced or redistributed or passed on directly or indirectly in any form to any other person or published, copied, in whole or in part, for any purpose unless otherwise expressly authorised. This service / information is not directed or intended for distribution to, or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction, where such distribution, publication, availability or use would be contrary to law, regulation or which would subjectBajaj Financial Securities Limited and affiliates/ group/holding companies to any registration or licensing requirements within such jurisdiction. The distribution of this document in certain jurisdictions may be restricted by law, and persons in whose possession this document comes, should inform themselves about and observe any such restrictions.  

The data would be provided to the clients on an "as is" and "where-is" basis, without any warranty. Bajaj Financial Securities Limited or its subsidiaries and associated companies shall not be liable for any delay or any other interruption which may occur in providing the data due to any reason including network (Internet) reasons or snags in the system, breakdown of the system or any other equipment, server breakdown, maintenance shutdown, breakdown of communication services or inability of the Bajaj Financial Securities Limited or its subsidiaries and associated companies to provide the data. In no event shall the Bajaj Financial Securities Limited or its holding and associated companies be liable for any damages, including without limitation direct or indirect, special, incidental, or consequential damages, losses or expenses arising in connection with the data provided by the Bajaj Financial Securities Limited or its holding and associated companies.

ADDITIONAL DISCLAIMER FOR U.S. PERSONS

Bajaj Financial Securities Limited is not a registered broker-dealer under the U.S. Securities Exchange Act of 1934, as amended (the"1934 act") and under applicable state laws in the United States. In addition, Bajaj Financial Securities Limited is not a registered investment adviser under the U.S. Investment Advisers Act of 1940, as amended (the "Advisers Act" and together with the 1934 Act, the "Acts), and under applicable state laws in the United States. Accordingly, in the absence of specific exemption under the Acts, any brokerage and investment services provided by Bajaj Financial Securities Limited, including the products and services described herein are not available to or intended for U.S. persons. This email message does not constitute an offer or invitation to purchase or subscribe for any securities or solicitation of any investments or investment services and/or shall not be considered as an advertisement tool. "U.S. Persons" are generally defined as a natural person, residing in the United States or any entity organized or incorporated under the laws of the United States. US Citizens living abroad may also be deemed "US Persons" under certain rules.  

ADDITIONAL DISCLAIMER FOR CANADIAN PERSONS

Bajaj Financial Securities Limited is not a registered adviser or dealer under applicable Canadian securities laws nor has it obtained an exemption from the adviser and/or dealer registration requirements under such law. Accordingly, any brokerage and investment services provided by Bajaj Financial Securities Limited, including the products and services described herein are not available to or intended for Canadian persons.  

This mailer and its respective contents do not constitute an offer or invitation to purchase or subscribe for any securities or solicitation of any investments or investment services.  

DISCLAIMER FOR REPORT

DISCLOSURES UNDER THE PROVISIONS OF SEBI (RESEARCH ANALYSTS) REGULATIONS 2014 (REGULATIONS)

Bajaj Financial Securities Limited ("Bajaj Broking" or "Research Entity") is regulated by the Securities and Exchange Board of India ("SEBI") and is licensed to carry on the business of broking, depository services and related activities.  

This Report has been prepared by Bajaj Financial Securities Limited in the capacity of a Research Analyst having SEBI Registration No. INH000010043 and distributed as per SEBI (Research Analysts) Regulations 2014. This report does not constitute an offer or solicitation for the purchase or sale of any financial instrument or as an official confirmation of any transaction. The information contained herein is from publicly available data or other sources believed to be reliable. This report is provided for assistance only and is not intended to be and must not alone be taken as the basis for an investment decision. The user assumes the entire risk of any use made of this information. Each recipient of this report should make such investigation as it deems necessary to arrive at an independent evaluation of an investment in the securities of companies referred to in this document (including the merits and risks involved), and should consult his own advisors to determine the merits and risks of such investment. The investment discussed or views expressed may not be suitable for all investors.  

This information is strictly confidential and is being furnished to you solely for your information. This information should not be reproduced or redistributed or passed on directly or indirectly in any form to any other person or published, copied, in whole or in part, for any purpose. This report is not directed or intended for distribution to, or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction, where such distribution, publication, availability or use would be contrary to law, regulation or which would subject Bajaj Financial Securities Limited and associates / group companies to any registration or licensing requirements within such jurisdiction. The distribution of this report in certain jurisdictions may be restricted by law, and persons in whose possession this report comes, should observe, any such restrictions. The information given in this report is as of the date of this report and there can be no assurance that future results or events will be consistent with this information. This information is subject to change without any prior notice. Bajaj Financial Securities Limited reserves the right to make modifications and alterations to this statement as may be required from time to time. Bajaj Financial Securities Limited or any of its associates / group companies shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report. Bajaj Financial Securities Limited is committed to providing independent and transparent recommendation to its clients. Neither Bajaj Financial Securities Limited nor any of its associates, group companies, directors, employees, agents or representatives shall be liable for any damages whether direct, indirect, special or consequential including loss of revenue or lost profits that may arise from or in connection with the use of the information. Our proprietary trading and investment businesses may make investment decisions that are inconsistent with the recommendations expressed herein. Past performance is not necessarily a guide to future performance .The disclosures of interest statements incorporated in this report are provided solely to enhance the transparency and should not be treated as endorsement of the views expressed in the report. The information provided in these reports remains, unless otherwise stated, the copyright of Bajaj Financial Securities Limited. All layout, design, original artwork, concepts and other Intellectual Properties, remains the property and copyright of Bajaj Financial Securities Limited and may not be used in any form or for any purpose whatsoever by any party without the express written permission of the copyright holders.  

We offer our research services to clients as well as our prospects. Though this report is disseminated to all the customers simultaneously, not all customers may receive this report at the same time. We will not treat recipients as customers by virtue of their receiving this report.  

Bajaj Financial Securities Limited and its associates, officer, directors, and employees, research analyst (including relatives) worldwide may: (a) from time to time, have long or short positions in, and buy or sell the securities thereof, of company(ies), mentioned herein or (b) be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker in the financial instruments of the subject company/company(ies) discussed herein or act as advisor or lender/borrower to such company(ies) or have other potential/material conflict of interest with respect to any recommendation and related information and opinions at the time of publication of research report or at the time of public appearance. Bajaj Financial Securities Limited may have proprietary long/short position in the above-mentioned scrip(s) and therefore should be considered as interested. The views provided herein are general in nature and do not consider risk appetite or investment objective of any particular investor; readers are requested to take independent professional advice before investing. This should not be construed as invitation or solicitation to do business with Bajaj Financial Securities Limited.  

Bajaj Financial Securities Limited or its associates may have received compensation from the subject company in the past 12 months. Bajaj Financial Securities Limited or its associates may have managed or co-managed public offering of securities for the subject company in the past 12 months. Bajaj Financial Securities Limited or its associates may have received compensation for investment banking or merchant banking or brokerage services from the subject company in the past 12 months. Bajaj Financial Securities Limited or its associates may have received any compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company in the past 12 months. Bajaj Financial Securities Limited or its associates have not received any compensation or other benefits from the Subject Company or third party in connection with the research report. Research analyst or his/her relative or Bajaj Financial Securities Limited’s associates may have financial interest in the subject company. Bajaj Financial Securities Limited, its associates, research analyst and his/her relative may have other potential/material conflict of interest with respect to any recommendation and related information and opinions at the time of publication of research report or at the time of public appearance.  

Research analyst has served as an officer, director or employee of subject Company: No  

Bajaj Financial Securities Limited has financial interest in the subject companies: No  

Bajaj Financial Securities Limited’s Associates may have actual/beneficial ownership of 1% or more securities of the subject company at the end of the month immediately preceding the date of publication of research report.  

Research analyst or his/her relative has actual/beneficial ownership of 1% or more securities of the subject company at the end of the month immediately preceding the date of publication of research report: No  

Bajaj Financial Securities Limited has actual/beneficial ownership of 1% or more securities of the subject company at the end of the month immediately preceding the date of publication of research report: No  

Subject company may have been client during twelve months preceding the date of distribution of the research report.  

There were no instances of non-compliance by Bajaj Financial Securities Limited on any matter related to the capital markets, resulting in significant and material disciplinary action during the last three years. A graph of daily closing prices of the securities is also available at https://www.nseindia.com/

ANALYST CERTIFICATION

The analyst for this report certifies that all of the views expressed in this report accurately reflect his or her personal views about the subject company or companies and its or their securities, and no part of his or her compensation was, is or will be, directly or indirectly related to specific recommendations or views expressed in this report.  

RISK DISCLOSURE ON DERIVATIVES

  • 9 out of 10 individual traders in equity Futures and Options Segment, incurred net losses.
  • On an average, loss makers registered net trading loss close to ₹ 50,000.
  • Over and above the net trading losses incurred, loss makers expended an additional 28% of net trading losses as transaction costs.
  • Those making net trading profits, incurred between 15% to 50% of such profits as transaction cost.

SEBI study dated January 25, 2023 on “Analysis of Profit and Loss of Individual Traders dealing in equity Futures and Options (F&O) Segment”, wherein Aggregate Level findings are based on annual Profit/Loss incurred by individual traders in equity F&O during FY 2021-22.

BROKERAGE DISCLAIMER

All leveraged intraday positions will be squared off on the same day. There is no restriction on the withdrawal of the unutilised margin amount. Brokerage will not exceed the SEBI prescribed limit. Visit : https://www.bajajbroking.in/pricing

MTF 

As subject to the provisions of SEBI Circular CIR/MRD/DP/54/2017 dated June 13, 2017, and the terms and conditions mentioned in the lights and obligations statement issued by the TM (if applicable).  

US INVESTING

International investment is not supervised by any regulatory body in India. Thus, any claim or dispute relating to such investment or enforcement of any agreement/contract /claim will not be under laws and regulations of the recognized stock exchanges and investor protection under Indian Securities Law. The account opening process will be carried out on Vested platform and Bajaj Financial Securities Limited will not have any role in it.  

MARKETSMITH / GOLDENPI / SOVEREIGN GOLD BONDS

Bajaj Financial Securities Limited is only distributor of this product. These are not exchange traded products and all disputes with respect to the distribution activity, would not have access to exchange investor redressal forum or Arbitration mechanism. Bajaj Financial Securities Limited is not a registered Investment Advisory. User discretion is required before investing. Client is requested to independently evaluate and/or consult their professional advisors before arriving at any conclusion to make any investment. The decision to invest shall be the sole responsibility of the Client and shall not hold Bajaj Financial Securities Limited, its employees and associates responsible for any losses, damages of any type whatsoever. 

IPO 

This should not be construed as soliciting investment. Investors’ discretion is required. Kindly consult your financial expert before investing. No need to issue cheques by investors while subscribing to IPO. Investments in securities markets are subject to market risks, read all the related documents carefully before investing.  

IPO FINANCING

IPO Financing is done through Bajaj Finance Limited. Bajaj Finance Limited (BFL or Lender) reserves the sole right to decide participation in any IPO and financing to the client shall be subject to credit assessment done by the lender. Also, BFL shall have full rights to decide the commercial terms for IPO and final application and financing shall be subject to all requirements being met by the client in a timely manner including documentation, account setup and payment of required Interest and Margin. Bajaj Finance Limited also reserves the exclusive rights to change any of the above-mentioned terms and conditions without prior notice to clients. The scheme margin is subject to change. UPI is mandatory to bid in all IPOs through our platform. As per exchange guidelines, all the UPI mandates will only be accepted till 5:00 PM on IPO closure day. 

SCREENERS 

Screeners is not Exchange-approved products and any disputes related to the same will not be dealt on the Exchange platform. 

SECURITIES 

Securities quoted are exemplary and not recommendatory. 

IPV 

Account would be open after all procedure relating to IPV and client due diligence is completed. 

IMAGES 

The images used are only for representation purpose. Proper due diligence has been done for the images and the image is not of any artist. The same is captured from royalty free sites. 

DISCLOSURE TO CLIENTS REGARDING PAYOUT OF FUNDS

As per SEBI circular no. SEBI/HO/MIRSD/MIRSD-PoD-1/P/CIR/2023/84 dated June 08, 2023, Stockbrokers are required to upstream the entire client funds lying with them to the Clearing Corporation. Based on client’s request the funds’ release request must be placed with the Clearing Corporation. Based on the internal process and cut-off timelines of the Clearing Corporation the funds will be released to the Stock Broker. In view of this new process, as specified by the regulatory and the cut-off time of Clearing Corporation/Banks processing the funds, Bajaj Financial Securities Limited cannot commit the exact time for releasing funds payout to its client. Clients are requested to note that, Bajaj Financial Securities Limited will not be responsible for any inconvenience caused to clients due to delay in release of funds payout, including fines, delayed charges, defaults, etc.