BSE at 150: 7 companies that shaped the Sensex and India's economy

These business giants have been part of the index since 1986 due to their resilience and reinvention

In June 2018, General Electric Co. (GE) lost its place in the Dow Jones Industrial Average (Dow). The American industrial powerhouse had been a continuous member of the 30-share US index since 1907. The removal of GE, which had once dominated the global business landscape, followed an 80 per cent crash in its stock price from its 2000 highs. The over 125-year-old company was struggling to maintain its prominence in the US corporate landscape. This event underscored the challenges of staying competitive in a rapidly evolving corporate world, where maintaining a leading edge is no easy feat.

 

The Sensex, much like its American counterpart, the Dow, is a living chronicle of economic evolution. Just as GE fell from grace, the Sensex has seen its share of fallen giants. The 30-share blue-chip stock index, considered a barometer of the Indian economy and stock markets, was first introduced on January 1, 1986, with calculations starting from a base value of 100, backdated to 1979.

 

On April 1, 1986, the Sensex closed at 550. Today, the index stands at nearly 84,000: a staggering jump of 168 times in less than 40 years. It translates to annualised returns of 14 per cent, placing the Indian markets among the best-performing globally.

 

For those who track the markets, the Sensex value provides an instant overview of the state of the markets and the economy. However, beneath the headline number lies a tale of resilience and reinvention.

 

From the original list of 30 Sensex stocks compiled in 1986, only three — Reliance Industries, Hindustan Unilever, and ITC — have remained consistently part of the index. Four others — Larsen & Toubro (L&T), Tata Steel, Tata Motors, and Mahindra & Mahindra — are also part of the Sensex today, though they were temporarily removed from the index at various points, some due to technical reasons such as demergers. Nestlé, also from the original list, was removed from the Sensex just last month. Among current members, Infosys and State Bank of India (SBI) are among the oldest surviving members, even though they were not part of the index at its inception.

 

Some companies, like Zenith, Ballarpur Industries, and Mukund (which was part of the index until the 1990s), have faded from the corporate scene. 

 

“The Sensex reflects the survival of the fittest,” says Ambareesh Baliga, an independent equity analyst. “To stay in, a company must be a sectoral leader with consistent performance and significant investor interest.”

 

Sensex components are selected based on their free-float market capitalisation, which is the market value after removing the value of shares held by promoters. In other words, these are the 30 companies that are at the top of their game at any given moment. The Sensex is reviewed semi-annually, where weaker performers are replaced by stronger ones.

 

This conveyor belt mechanism has reshaped the Sensex’s sectoral complexion over time. In the 1980s, textiles and shipping dominated; today, financials, IT, and consumer goods lead the charge. The absence of IT, oil and gas, or PSU banks in the early Sensex reflects an era when these sectors were either unlisted or at a nascent stage.

 

“As new sectors emerge, their leaders make it to the index,” says U R Bhat, co-founder of Alphaniti Fintech. “For instance, if Indian Railways lists, its sheer size could dominate.”

 

Here are survivors from the original Sensex list

 

Reliance Industries, textiles to global giant

 

What began as Dhirubhai Ambani’s modest yarn trading venture in 1957 has transformed into India’s most valuable company. Reliance Industries’ 1977 initial public offer, oversubscribed seven times, sparked India’s equity cult and cemented its place in the Sensex. Under Mukesh Ambani’s leadership, Reliance Industries (RIL) entered the Fortune Global 500 in 2004, launched India’s largest retailer, Reliance Retail, in 2006, and achieved the world’s fastest greenfield deep water project in the KG-D6 block by 2009. The 2016 launch of Jio revolutionised telecom, catapulting India to the global top spot in mobile data consumption. Today, with Akash, Isha, and Anant Ambani steering telecom, retail, and new energy, respectively, RIL’s diversification — from oil to digital to green energy — ensures its dominance. RIL has the second-largest weight in Sensex after HDFC Bank. As a result, its fortunes are closely tied to the domestic markets as well as the economy.

 

Hindustan Unilever, a legacy of serving India households

 

Hindustan Unilever's (HUL) journey began in 1888 with Sunlight soap, introducing branded marketing to India. From Lifebuoy in 1895 to Dalda in 1937, HUL (then Lever Brothers) built a legacy of household names. Its 1956 merger of Hindustan Vanaspati, Lever Brothers India and United Traders, with 10 per cent equity offered to Indians, marked a pioneering move. Acquisitions like Brooke Bond (1984), Pond’s (1986), and Tata Oil Mills (1993) expanded its portfolio, while the 2007 rebranding to Hindustan Unilever aligned it with its global parent. The 2018 acquisition of GlaxoSmithKline’s consumer health brands, including Horlicks, paved its entry into the nutrition segment. Now, HUL is pivoting to e-commerce and health-focused ventures like Zywie Ventures and Nutritionalab. Today, HUL has a market capitalisation of ₹5.5 trillion, making it the 10th most valuable company in the country.

 

I.T.C., beyond tobacco

 

From a modest outpost of a foreign firm on Radha Bazar Street focused on tobacco to an Indian conglomerate straddling a spectrum of businesses, ITC has come a long way over the last 100-plus years. On August 24, 1910, ITC was incorporated as the Imperial Tobacco Company of India. As ownership gradually Indianised and the company looked beyond tobacco, the name was changed to India Tobacco Company in 1970 under its first Indian chairman Ajit Narain Haksar. It was shortened to I.T.C. in 1974 and finally became ITC Limited in 2001 – reflecting diverse business horizons. Some bets fell short - by 1996, when Y C Deveshwar took charge, most of the diversifications had failed or were faltering; the only businesses with some scale were paperboards and hotels. But ITC stayed put on its diversification agenda and how – new growth drivers were created with information technology in 2000 and non-cigarettes fast-moving consumer goods in 2001. Today’s I.T.C. is not just defined by its cigarette brands – India Kings, Classic and Gold Flake – but also by Aashirvaad (staples, instant meals and more), Sunfeast (biscuits and cakes), Bingo! (snacks), Fiama (personal care), et al.

 

L&T, building infrastructure for the country

 

Larsen & Toubro (L&T), founded in 1938 by Danish engineers Henning Holck-Larsen and Søren Kristian Toubro, is India’s premier engineering and construction conglomerate. A Sensex member in 1986, L&T faced temporary exclusion in 2004 due to the demerger of its cement business. But it was quickly added back to the index. L&T’s journey began with importing machinery to war-torn India, evolving into a powerhouse that built iconic projects like the Mumbai Trans Harbour Link and Delhi Metro under the leadership of AM Naik. Its engineering prowess spans nuclear reactors, defence equipment, and green energy solutions. The 2010s saw L&T expand globally, securing contracts in the Middle East and Southeast Asia, while its 2018 acquisition of Mindtree bolstered its IT portfolio.

 

M&M, tractors to modern technology

 

Mahindra & Mahindra (M&M), founded in 1945 as a steel trading company, has grown into a diversified conglomerate synonymous with India’s rural and automotive sectors. A Sensex constituent in 1986, M&M was briefly excluded during periods of sectoral churn but has reestablished itself as a leader in autos and farm equipment, reflecting its adaptability. M&M’s early success came from assembling Willys Jeeps for India’s rugged terrain, laying the foundation for its dominance in utility vehicles. The 1990s launch of the Scorpio SUV redefined the Indian automotive market, blending affordability with aspiration. Today, M&M is India’s largest tractor manufacturer, with a 40 per cent market share, and a growing player in electric vehicles (EVs) through its “Born Electric” platform, unveiled in 2022.The company’s diversification into tech, through subsidiaries like Tech Mahindra, and renewable energy has bolstered its market cap close to the ₹4-trillion mark.

 

Tata Motors, driving an automotive revolution

 

Tata Motors, established in 1945 as Tata Engineering and Locomotive Company (Telco), has been a driving force in India’s automotive landscape. A Sensex member in 1986, it faced temporary exclusions due to market cap fluctuations but has solidified its position as a sectoral leader. From producing locomotives to becoming a global automotive powerhouse, Tata Motors’ journey is one of innovation and bold bets. The 2008 acquisition of Jaguar Land Rover (JLR) for $2.3 billion transformed Tata Motors into a global brand, with JLR contributing significantly to revenues despite early financial strains. In 2025, Tata Motors is now at the forefront of India’s EV revolution. The company will soon be split into two, separating its commercial and passenger vehicle (including JLR) businesses.

 

Tata Steel, making of an industrial pioneer

 

Tata Steel, founded in 1907 as Tata Iron and Steel Company (TISCO) by Jamsetji Tata, is one of India’s oldest and most storied industrial giants. From its humble beginnings in Jamshedpur, where it established Asia’s first integrated steel plant, Tata Steel has been a cornerstone of India’s industrial growth. A founding member of the Sensex in 1986, it faced intermittent exclusions due to market dynamics but has reclaimed its place among the index’s elite, reflecting its enduring relevance.

 

By 1958, Tata Steel’s production capacity hit 2 million tonnes, making it India’s largest steelmaker. The 2007 acquisition of Corus, a British-Dutch steel giant, catapulted Tata Steel into the global top 10, though integration challenges followed. Restructuring of the UK business over the years and focus on high-margin products have strengthened the balance sheet.

 

(With inputs from Sundar Sethuraman, Ishita Ayan Dutt, Sharleen D’Souza and Dev Chatterjee)