Only 18 companies out of the 30 companies in the SENSEX in 2008 have remained in the SENSEX in 2018. Here is what happened to some of the companies that have dropped out.
| Name of the company | Reason for being out of the SENSEX | Annualized Return
(2008-2018) |
| DLF Universal Ltd | Legal and regulatory issues | -3.50% |
| Jaiprakash Associates | Insolvency proceedings | -23.20% |
| Reliance Communications | Insolvency proceedings | -25.24% |
| Reliance Infrastructure | Insolvency proceedings | -4.19% |
| Satyam Computer Services | Fraudulent reporting leading to bankruptcy | – |
| Sterlite Industries | Taken private | – |
| BHEL | Poor performance | -8.11% |
| TATA Power | Poor performance | -0.30% |
Source: Yahoo Finance, 4th October,2018
Selecting blue chip companies doesn’t always mean good returns. Always track your stocks on a regular basis to identify factors that may impact the stocks negatively. If you do not have time to track the stocks in your portfolio, invest in equity mutual funds.
