Are we ‘benching’ it right?
O ne of the most important ways to gauge the mood of the Indian economy is through Bombay Stock Exchange’s Sensitive Index (Sensex). While it shows if things are hunky-dory in the economy than it is also supposed to reflect the depressing state of the market. The 30 share index is considered to be the economic barometer of the Indian capital market. Apparently, these 30 components are the largest and most actively traded stocks. These stocks are representatives of different sectors of the economy. Although they represent less than 1 percent of the total number of companies listed on the Bombay Stock Exchange yet they account for around 50 percent of the BSE's total market capitalisation. Indian economy is defined by the small entrepreneurs and not by the big brothers. The heavyweights are well-armoured to fight a declining economy and it is the small and mid caps that truly bear the burns of rising costs of funds, power, labour etc. This is the basic reason why the market i