The Bombay 30 is a stock market index of the 30 largest companies listed on Bombay Stock Exchange. The time when the index is available to buy, you can learn from trading session schedule. You need to find “the Asian trading session” there.
The Bombay 30 is traded on the BSE under the ticker BSESN, the full name of the index is the S&P BSE SENSEX.
The index is composed of the largest Indian companies, and their stocks have the highest volatility on the market. The companies included in the index present different segments of the Indian economy.
The S&P BSE SENSEX was first introduced on January 1, 1986. In 2011, the total market capitalization of all companies in the index amounted to $488 billion, and free-float stocks made up $257 billion.
As of today, the index listing includes companies involved in the segments like bank operations (Axis Bank), pharmaceuticals (Cipla), electric equipment (Bharat Heavy Electricals), automotive (Hero Motocorp), IT (Infosys), oil and gas (Oil and Natural Gas Corporation), steel production (Hindalco Industries) etc.
Index chart over the last years
If you trade binary options and choose this underlying asset, you don’t need to analyze data on all thirty companies included in the listing of the Bombay 30. The companies having higher capitalization make a deeper impact on the index. You can keep track of all changes right on the website of the Bombay Stock Exchange:
Factors that can influence the price of stocks depend on the segment of economy in which a company involved. For instance, in case of machine building and IT companies, the price of their stocks begin to rise before a new product release to the market. This is because there are traders aiming to buy stocks at a low price and sell at a higher price. Due to them, there is a trend on the market lying in a decrease of stocks when an official launch of a product is expected. This is the reason why quite a few traders begin to sell stocks which can rise on the positive news.
This is done to buy them later at an understated price and make the highest profit on their future rise after a new product release. A decrease in price is caused by mass selling. This is why if you trade binary options, you need to wait until the index reaches its lowest level before positive news is released and only after that you can buy an option expecting the price to rise. However, you need to have in mind that the index is influenced not only by one company but by the group of companies included in the index. Therefore, the above said strategy can be used if you have thoroughly considered all factors.
The S&P BSE SENSEX is calculated based on the price of stocks of the Indian companies which in turn can be affected by political events in India and its economy. This also allows us to make a conclusion that the index is influenced by the rate of the Indian currency.
Macroeconomic performance of India, that is, the gross domestic products, unemployment rate, and purchasing power are of great importance. Negative factors include political instability, natural disasters, and other events that can reduce output of the leading enterprises. The latter includes employees’ strikes.
While performing analysis, to follow all news releases of the companies included in the index is quite difficult. It’s much easier to keep track of their capitalization. If it goes down, then the stock price also falls. And if the stock price decreases, the index also drops.
Company top managers being under investigation is one of the examples of a negative factor that can make an extremely adverse impact on the stocks.
To make a profit trading binary options on the S&P BSE SENSEX, you just need to pinpoint whether the price will rise or drop during a certain period.
Options on the Bombay 30 are available to buy from AnyOption, the well-known and time-proved broker.
Any can earn a profit on the most renowned Indian index S&P BSE SENSEX or so-called “Bombay 30”!
Along with this index, AnyOption offers options on a great number of other underlying assets like universally recognized indices, stocks of the world’s leading companies, etc.