BSE 200 Index

BSE 200 Index was constructed and launched on 27th May 1994. The number of companies listed on the Bombay Stock Exchange registered a phenomenal increase from 992 in the year 1980 to about 3,200 companies by the end of March 1994. These factors necessitated compilation of a new broad-based index series reflecting the present market trends in a more effective manner and providing a better representation of the increased equity stocks, market capitalization as also the newly emerged industry groups.

The equity shares of 200 selected companies from the specified and non-specified lists of this Exchange have been considered for inclusion in the sample for `BSE-200'. The companies have been selected on the basis of current market capitalization of the listed scrips on the exchange, the market activity as reflected by the volumes of turnover of the companies, and certain fundamental factors.

The financial year 1989-90 was chosen as the base year because of the price stability exhibited during that year and due to its proximity to the current period.