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NSE BSE
sensex

SENSEX

81526.14 16.09 (0.01%)
Dec 11 2024 03:30 PM Sector: -

1

SENSEX

img img img img
No Data Available

SENSEX Performance

Day Range

Low81383.42 High81742.37
81526.14

52 Week Range

Low 69100.56 High 85978.25
81526.14

Open Price

81568.39

Prev. Close

81510.05

Volume (Shares)

.00

Total traded value

.00

Upper Circuit

.00

Lower Circuit

.00

   

An Overview

In the world of finance and investing, there are many terms and indices that might sound intimidating at first, but they play a crucial role in understanding the dynamics of the financial markets. One such term is "Sensex." If you've ever wondered what Sensex is, how it works, and why it matters, you're in the right place.

 

What is Sensex?

The Sensex, short for the Sensitive Index, is a stock market index in India. To put it simply, it's like a giant scoreboard that tracks the performance of some of the biggest and most influential companies listed on the Bombay Stock Exchange (BSE). The companies listed on the Sensex are referred to as "blue-chip" companies because they are known for their stability, large market capitalization, and widespread presence in the Indian economy.

 

Why Does Sensex Matter?

The Sensex is not just a bunch of numbers; it's a reflection of the Indian economy and provides valuable insights into how businesses are performing. Here's why it matters:

 

  • Economic Barometer: Think of the Sensex as a barometer that measures the health of the Indian economy. When the Sensex rises, it suggests that businesses are generally doing well, which often correlates with a thriving economy.

  • Investment Indicator: Investors, both big and small, use the Sensex as a benchmark to gauge how their investments are performing. When the Sensex goes up, it's a good sign for investors as it indicates growth in the market.

  • Confidence Booster: High Sensex numbers often boost investor and consumer confidence. When people see the stock market doing well, they tend to feel more positive about the economy, which can lead to increased spending and investments.

 

How is Sensex Calculated?

The Sensex is not a simple average of all the stock prices; it's a bit more sophisticated than that. Let's break down various terms:

 

  • Free-float Market Capitalization: Free-float market capitalization only considers the shares that are available for trading in the market, excluding shares held by promoters, government, and other entities that are not actively traded.

  • Weighted Methodology: In Sensex, companies are not given equal weight. The bigger companies have a more significant impact on the index. So, if a large-cap company's stock price goes up, it has a more substantial effect on the Sensex compared to a small-cap company.

 

In simple terms, Sensex gives more importance to the big players and how they are performing in the market.

 

The Sensex Components

 

The Sensex comprises 30 carefully chosen blue-chip stocks. These stocks belong to various sectors, making the index diverse and representative of the broader market. Some of the sectors typically represented in the Sensex include finance, information technology, healthcare, and consumer goods.

 

Some of the well-known companies on the Sensex include Tata Consultancy Services (TCS), Reliance Industries, HDFC Bank, and Infosys. These companies are the giants of the Indian stock market and are often used as indicators of its overall performance.

 

Sensex Performance and What It Tells Us

The Sensex is a daily barometer of the Indian stock market, and its performance can tell us a lot about the current financial landscape. Here are a few key insights we can gain from Sensex movements:

 

  • Bull Market vs. Bear Market: When the Sensex is on an upward trajectory, it indicates a bull market, characterised by rising prices and optimism. Conversely, a declining Sensex signifies a bear market, marked by falling prices and pessimism.

  • Investor Sentiment: The Sensex can reflect investor sentiment. Positive news, such as strong corporate earnings or economic growth, can drive the Sensex higher. On the flip side, negative news can lead to a decrease in the Sensex.

  • Market Volatility: Sharp fluctuations in the Sensex can indicate increased market volatility. This could be due to global events, economic data releases, or company-specific news.

  • Economic Health: A consistently rising Sensex may suggest a healthy and growing economy, while a declining Sensex can be a warning sign of economic troubles.

  • Long-Term Trends: By analysing the historical performance of the Sensex, investors can identify long-term trends in the Indian stock market.

 

Sensex and Your Investments

If you're an investor or thinking about entering the world of investing, it's important to understand how the Sensex can impact your financial decisions. Here's what you need to know:

 

  • Benchmark for Performance: Many mutual funds, exchange-traded funds (ETFs), and investment portfolios are benchmarked against the Sensex. If a fund consistently outperforms the Sensex, it can be a good indicator of strong fund management.

  • Diversification: The Sensex represents a diverse range of sectors. Diversifying your investments across these sectors can help reduce risk and increase the potential for returns.

  • Volatility Awareness: Be prepared for market volatility. The Sensex can experience sharp fluctuations, and it's important not to make impulsive investment decisions based solely on short-term movements.

  • Long-Term Perspective: Investing in the stock market, whether through individual stocks or mutual funds, is generally a long-term endeavour. Don't get swayed by daily or weekly Sensex movements; instead, focus on your long-term financial goals.

 

Wrapping Up

In a nutshell, the Sensex is a significant indicator of the Indian stock market's health and performance. It represents a carefully selected group of top companies, making it a valuable tool for investors and economists alike. By keeping an eye on the Sensex and understanding its movements, you can make more informed investment decisions and gain insights into the overall economic landscape of India.

 

So, the next time you see a news headline about the Sensex hitting a new high or low, you'll know that it's not just a number but a reflection of the complex and dynamic world of finance and economics.

All Indices

  • NSE
  • BSE
NAME PRICE CHANGE CHANGE % PREVIOUS CLOSE
Nifty 50
24641.80
arrowup arrowndown
31.75 0.13% 24610.05 forward-arrow
India VIX
13.27
arrowup arrowndown
-0.51 -3.70% 13.78 forward-arrow
Nifty Bank
53391.35
arrowup arrowndown
-186.35 -0.35% 53577.70 forward-arrow
Nifty 100
25635.05
arrowup arrowndown
34.85 0.14% 25600.20 forward-arrow
Nifty 200
14007.60
arrowup arrowndown
22.15 0.16% 13985.45 forward-arrow
Nifty Fin Service
24803.05
arrowup arrowndown
0.10 0.00% 24802.95 forward-arrow
Nifty 500
23358.15
arrowup arrowndown
43.25 0.19% 23314.90 forward-arrow
NIFTY Alpha 50
59317.00
arrowup arrowndown
339.90 0.58% 58977.10 forward-arrow
Nifty Auto
23851.85
arrowup arrowndown
84.80 0.36% 23767.05 forward-arrow
Nifty CPSE
6562.95
arrowup arrowndown
-11.10 -0.17% 6574.05 forward-arrow
Nifty Energy
37308.85
arrowup arrowndown
-142.70 -0.38% 37451.55 forward-arrow
Nifty GS 4 8Yr
2982.58
arrowup arrowndown
0.24 0.01% 2982.34 forward-arrow
Nifty GS 8 13Yr
2762.35
arrowup arrowndown
0.60 0.02% 2761.75 forward-arrow
NIFTY INDIA MFG
14454.35
arrowup arrowndown
32.75 0.23% 14421.60 forward-arrow
Nifty Infra
8904.55
arrowup arrowndown
4.80 0.05% 8899.75 forward-arrow
Nifty IT
45350.35
arrowup arrowndown
150.60 0.33% 45199.75 forward-arrow
Nifty Media
2010.85
arrowup arrowndown
-10.40 -0.51% 2021.25 forward-arrow
Nifty Metal
9483.65
arrowup arrowndown
8.30 0.09% 9475.35 forward-arrow
Nifty Midcap 50
16536.95
arrowup arrowndown
53.30 0.32% 16483.65 forward-arrow
Nifty MNC
29519.30
arrowup arrowndown
271.50 0.93% 29247.80 forward-arrow
Nifty Next 50
73292.15
arrowup arrowndown
195.70 0.27% 73096.45 forward-arrow
Nifty Pharma
22302.60
arrowup arrowndown
11.15 0.05% 22291.45 forward-arrow
Nifty PSE
10363.30
arrowup arrowndown
11.40 0.11% 10351.90 forward-arrow
Nifty PSU Bank
7089.05
arrowup arrowndown
-63.60 -0.89% 7152.65 forward-arrow
Nifty Pvt Bank
25856.10
arrowup arrowndown
-63.75 -0.25% 25919.85 forward-arrow
Nifty Realty
1094.35
arrowup arrowndown
2.00 0.18% 1092.35 forward-arrow
NIFTY SMLCAP 50
9467.20
arrowup arrowndown
14.40 0.15% 9452.80 forward-arrow
NIFTY TOTAL MKT
13193.60
arrowup arrowndown
25.65 0.19% 13167.95 forward-arrow
Nifty100 Liq 15
6452.05
arrowup arrowndown
13.50 0.21% 6438.55 forward-arrow
Nifty GS 10Yr
2444.57
arrowup arrowndown
-1.58 -0.06% 2446.15 forward-arrow
Nifty FMCG
56766.80
arrowup arrowndown
236.55 0.42% 56530.25 forward-arrow
Nifty Commodities
8753.30
arrowup arrowndown
4.80 0.05% 8748.50 forward-arrow
NIFTY CONSR DURBL
42742.90
arrowup arrowndown
241.00 0.57% 42501.90 forward-arrow
Nifty Consumption
11567.30
arrowup arrowndown
42.85 0.37% 11524.45 forward-arrow
Nifty Div Opps 50
6658.70
arrowup arrowndown
18.80 0.28% 6639.90 forward-arrow
Nifty FinSrv25 50
26688.30
arrowup arrowndown
48.25 0.18% 26640.05 forward-arrow
Nifty GrowSect 15
12149.05
arrowup arrowndown
36.65 0.30% 12112.40 forward-arrow
Nifty GS 10Yr Cln
892.66
arrowup arrowndown
-0.75 -0.08% 893.41 forward-arrow
Nifty GS 11 15Yr
3057.19
arrowup arrowndown
0.28 0.01% 3056.91 forward-arrow
Nifty GS 15YrPlus
3379.50
arrowup arrowndown
0.00 0.00% 3379.50 forward-arrow
Nifty GS Compsite
2858.14
arrowup arrowndown
0.36 0.01% 2857.78 forward-arrow
NIFTY HEALTHCARE
14408.75
arrowup arrowndown
52.45 0.37% 14356.30 forward-arrow
NIFTY IND DIGITAL
10001.75
arrowup arrowndown
13.15 0.13% 9988.60 forward-arrow
NIFTY LARGEMID250
16352.70
arrowup arrowndown
37.75 0.23% 16314.95 forward-arrow
NIFTY M150 QLTY50
25262.35
arrowup arrowndown
106.85 0.42% 25155.50 forward-arrow
NIFTY MICROCAP250
26411.60
arrowup arrowndown
110.10 0.42% 26301.50 forward-arrow
Nifty Mid Liq 15
14725.80
arrowup arrowndown
52.65 0.36% 14673.15 forward-arrow
NIFTY MID SELECT
13133.80
arrowup arrowndown
48.40 0.37% 13085.40 forward-arrow
NIFTY MIDCAP 100
59292.95
arrowup arrowndown
157.55 0.27% 59135.40 forward-arrow
NIFTY MIDCAP 150
21879.55
arrowup arrowndown
70.45 0.32% 21809.10 forward-arrow
NIFTY MIDSML 400
20728.85
arrowup arrowndown
63.65 0.31% 20665.20 forward-arrow
NIFTY OIL AND GAS
11224.90
arrowup arrowndown
2.55 0.02% 11222.35 forward-arrow
Nifty Serv Sector
32958.90
arrowup arrowndown
21.40 0.06% 32937.50 forward-arrow
NIFTY SMLCAP 100
19657.35
arrowup arrowndown
74.15 0.38% 19583.20 forward-arrow
NIFTY SMLCAP 250
18502.65
arrowup arrowndown
52.05 0.28% 18450.60 forward-arrow
NIFTY100 EQL Wgt
32903.35
arrowup arrowndown
101.65 0.31% 32801.70 forward-arrow
NIFTY100 LowVol30
19688.25
arrowup arrowndown
77.40 0.39% 19610.85 forward-arrow
NIFTY100 Qualty30
5784.95
arrowup arrowndown
32.45 0.56% 5752.50 forward-arrow
Nifty100ESGSecLdr
4117.00
arrowup arrowndown
5.90 0.14% 4111.10 forward-arrow
NAME PRICE CHANGE CHANGE % PREVIOUS CLOSE
SENSEX
81526.14
16.09 0.02% 81510.05 forward-arrow
BSE100
26174.00
29.15 0.11% 26144.85 forward-arrow
SNSX50
25912.99
25.71 0.10% 25887.28 forward-arrow
BSE200
11413.58
16.14 0.14% 11397.44 forward-arrow
BSE500
36736.37
60.55 0.17% 36675.82 forward-arrow
BSE CG
73519.41
173.16 0.24% 73346.25 forward-arrow
BSE CD
66494.79
387.88 0.59% 66106.91 forward-arrow
BSEPSU
20481.34
-18.16 -0.09% 20499.50 forward-arrow
TECK
20251.87
70.34 0.35% 20181.53 forward-arrow
BANKEX
60767.63
-191.64 -0.31% 60959.27 forward-arrow
AUTO
53995.50
197.66 0.37% 53797.84 forward-arrow
METAL
32016.12
38.90 0.12% 31977.22 forward-arrow
OILGAS
27216.56
43.65 0.16% 27172.91 forward-arrow
DOL30
7887.22
0.99 0.01% 7886.23 forward-arrow
DOL100
3190.69
3.34 0.10% 3187.35 forward-arrow
DOL200
2239.20
3.02 0.14% 2236.18 forward-arrow
REALTY
8514.73
5.31 0.06% 8509.42 forward-arrow
POWER
7582.37
-26.14 -0.34% 7608.51 forward-arrow
BSEIPO
16844.09
68.69 0.41% 16775.40 forward-arrow
GREENX
7827.50
33.63 0.43% 7793.87 forward-arrow
CARBON
4344.48
15.78 0.36% 4328.70 forward-arrow
SMEIPO
113528.40
1398.18 1.25% 112130.22 forward-arrow
INFRA
649.29
0.16 0.02% 649.13 forward-arrow
CPSE
3991.44
5.54 0.14% 3985.90 forward-arrow
MIDCAP
48084.73
117.58 0.25% 47967.15 forward-arrow
SMLCAP
57703.48
200.36 0.35% 57503.12 forward-arrow
BSEFMC
20882.45
70.01 0.34% 20812.44 forward-arrow
BSE HC
44433.06
134.36 0.30% 44298.70 forward-arrow
BSE IT
45140.12
156.34 0.35% 44983.78 forward-arrow
MFG
1028.27
1.74 0.17% 1026.53 forward-arrow
ALLCAP
10471.31
71.07 0.68% 10400.24 forward-arrow
COMDTY
7727.62
21.65 0.28% 7705.97 forward-arrow
CONDIS
10212.85
22.91 0.22% 10189.94 forward-arrow
ENERGY
11503.05
4.62 0.04% 11498.43 forward-arrow
FINSER
12002.06
5.46 0.05% 11996.60 forward-arrow
INDSTR
15991.80
62.97 0.40% 15928.83 forward-arrow
LRGCAP
9613.12
11.01 0.11% 9602.11 forward-arrow
MIDSEL
17967.06
48.43 0.27% 17918.63 forward-arrow
SMLSEL
8531.44
40.20 0.47% 8491.24 forward-arrow
TELCOM
2964.30
9.69 0.33% 2954.61 forward-arrow
UTILS
5798.46
-20.10 -0.35% 5818.56 forward-arrow
BHRT22
9090.30
-23.76 -0.26% 9114.06 forward-arrow
ESG100
409.05
0.36 0.09% 408.69 forward-arrow
MID150
16532.40
53.64 0.33% 16478.76 forward-arrow
SML250
7414.33
24.97 0.34% 7389.36 forward-arrow
LMI250
10836.94
15.72 0.15% 10821.22 forward-arrow
MSL400
12650.15
41.60 0.33% 12608.55 forward-arrow
BSEDSI
1039.98
2.27 0.22% 1037.71 forward-arrow
BSEEVI
952.55
-0.70 -0.07% 953.25 forward-arrow
BSELVI
1801.49
5.37 0.30% 1796.12 forward-arrow
BSEMOI
2337.31
10.11 0.43% 2327.20 forward-arrow
BSEQUI
1855.49
12.95 0.70% 1842.54 forward-arrow
DFRGRI
1487.24
3.76 0.25% 1483.48 forward-arrow
LCTMCI
9230.95
9.11 0.10% 9221.84 forward-arrow
BSEPBI
18870.93
-40.30 -0.21% 18911.23 forward-arrow

What is the BSE SENSEX Index?

The BSE SENSEX Index is a benchmark index of the Bombay Stock Exchange (BSE), representing the 30 largest and most actively traded companies in India. Introduced in 1986, the index reflects the overall performance of the stock market and serves as an indicator of the economic health of the country. The BSE SENSEX includes companies from various sectors, such as banking, IT, energy, and FMCG, providing a comprehensive snapshot of market sentiment. Calculated based on a free-float market capitalization method, the index tracks price movements of its constituent stocks in real-time, offering investors insights into market trends. A key metric for both domestic and international investors, the BSE SENSEX Index plays a vital role in portfolio management and decision-making in India’s financial markets.

How is the BSE SENSEX Index Value Calculated?

Calculation of the BSE SENSEX Index involves use of the free-float market capitalization method, reflecting market dynamics by excluding locked-in shares. It consists of 30 companies from various sectors, representing India's economy. The index value is determined by multiplying each company's free-float market capitalization by a price-weighted divisor, which is periodically adjusted to account for stock splits, dividends, or rights issues, ensuring consistency.

To compute the value of the BSE SENSEX, the following formula is applied:

SENSEX = (Index Divisor ∑ (Free-Float Market Capitalization of 30 Companies)​)

This formula ensures that only the actively traded shares influence the index value, providing a transparent and accurate reflection of market trends. The BSE SENSEX Index serves as a key benchmark for investors and analysts to gauge the overall performance of the Indian stock market.

BSE SENSEX Scrip Selection Criteria

The BSE SENSEX includes 30 of the largest and most actively traded companies on the Bombay Stock Exchange (BSE), selected through a systematic process to ensure accurate representation of the Indian stock market. Below are the selection criteria:

  1. Company Size and Market Capitalization

    Companies must have a high market capitalization, ranking among the top in their respective sectors, to ensure the index reflects the performance of influential companies in the Indian economy.

  2. Liquidity and Trade Volume

    Companies with high average daily trading volumes are prioritized, ensuring the index includes frequently traded scrips, making the BSE SENSEX a reliable indicator of market trends.

  3. Sector Representation

    The BSE SENSEX includes companies from diverse sectors, such as banking, IT, and energy, to provide a balanced economic representation.

  4. Free-Float Market Capitalization

    Only the publicly traded portion of a company’s stock is considered, giving companies with higher free-float capitalizations more weight in the index.

  5. Track Record and Financial Health

    Companies must have a solid track record of performance, including revenue growth and profitability, to be eligible for inclusion.

  6. Regulatory Compliance

    Listed companies must comply with SEBI and BSE regulations, ensuring transparency and governance standards are maintained.

  7. Timely Review and Adjustments

    The index committee regularly reviews and updates the BSE SENSEX constituents to maintain relevance and consistency with market trends.

  8. Listing History

    Eligible companies must have a consistent listing history on the BSE, demonstrating a stable trading pattern over several years.

  9. Corporate Governance Standards

    Strong governance practices are favored to promote credibility and ensure that well-managed companies are included in the index.

  10. Public Shareholding

    Companies must meet minimum public shareholding levels, ensuring broader participation in trading and reducing concentration risk.

How Does BSE SENSEX Work?

The BSE SENSEX operates by tracking market performance and continuously updating based on real-time activity. Key features include:

  1. Free-Float Market Capitalization: Considers only shares available for trading.
  2. Company Weightage: Companies are weighted based on market capitalization.
  3. Real-Time Updates: Reflects live market activity and price movements during trading hours.
  4. Index Divisor: Adjusts for corporate actions to prevent artificial index value changes.
  5. Sector Representation: Ensures balanced economic reflection across sectors.
  6. Periodic Review: Undergoes reviews to replace underperforming companies.
  7. Global Benchmark: Acts as a key benchmark for international investors.

What are the Benefits of Investing in the BSE SENSEX?

Investing in the BSE SENSEX provides exposure to India’s financial markets. Key benefits include:

  1. Exposure to Market Leaders

    Investing in the BSE SENSEX provides exposure to well-established companies across diverse sectors.

  2. Diversification Across Sectors

    Includes companies from multiple sectors, helping reduce sector-specific risks.

  3. Reflects Overall Market Performance

    Offers insights into market direction and economic health.

  4. High Liquidity

    Constituent stocks are frequently traded, ensuring ease of buying and selling.

  5. Lower Risk

    Large-cap companies with stable performance make it a relatively low-risk investment option.

  6. Long-Term Growth Potential

    Investors can benefit from the appreciation of established companies.

  7. Ease of Investment

    Index funds and ETFs provide accessible ways to invest in the BSE SENSEX.

  8. Transparency and Simplicity

    Calculated using free-float market capitalization, ensuring transparency.

  9. Benchmark for the Indian Economy

    Aligns portfolios with India’s broader economy.

  10. Attracts Foreign Investment

    The BSE SENSEX attracts foreign capital, enhancing returns for investors.

What is the History of the BSE SENSEX?

The BSE SENSEX, introduced on January 1, 1986, is a prominent stock market index in India, comprising 30 well-established companies listed on the Bombay Stock Exchange (BSE). It serves as a benchmark for the Indian equity market, reflecting the performance of major sectors such as finance, technology, energy, and consumer goods. The index employs a free-float market capitalization methodology, which considers only the shares readily available for trading, providing a more accurate representation of market movements.

Over the years, the SENSEX has achieved significant milestones:

  • 1,000 points: Reached on July 25, 1990.

  • 10,000 points: Surpassed on February 7, 2006.

  • 50,000 points: Crossed on January 21, 2021.

These milestones highlight the growth and resilience of India's economy and capital markets. The SENSEX continues to be a vital indicator for investors, offering insights into the health and trends of the Indian stock market.

 

Stay Updated with Market News and Updates

Market Buzz

Additional FAQs

  1. How to invest in BSE SENSEX stocks?

    To invest in BSE SENSEX stocks, you can either buy individual shares of the companies listed in the BSE SENSEX index through a stockbroker or invest in an index fund or exchange-traded fund (ETF) that tracks the performance of the BSE SENSEX. These funds allow you to invest in all 30 companies at once, offering diversification and ease of management.

  2. What are BSE SENSEX stocks?

    BSE SENSEX stocks are the shares of the 30 largest and most actively traded companies on the Bombay Stock Exchange (BSE). These companies are selected based on various criteria such as market capitalization, liquidity, and sector representation, ensuring the index accurately reflects the overall market performance.

  3. Can you trade shares on BSE SENSEX?

    Yes, you can trade shares of companies included in the BSE SENSEX index just like any other stock listed on the Bombay Stock Exchange. You can buy or sell shares through a stockbroker or an online trading platform.

  4. In which year was the BSE SENSEX index launched?

    The BSE SENSEX index was launched in 1986. It was the first equity index introduced in India, and it continues to serve as a benchmark for the Indian stock market.

  5. Can we buy BSE SENSEX today and sell it tomorrow?

    Yes, you can buy BSE SENSEX stocks today and sell them tomorrow. This is known as intra-day trading. However, it's essential to consider transaction costs and market volatility when making short-term trades.

  6. What is SENSEX?

    SENSEX, or the BSE SENSEX, is a stock market index that tracks the performance of 30 of the largest and most actively traded companies on the Bombay Stock Exchange. It is considered a key indicator of the overall health and performance of the Indian stock market.

  7. What is the core objective of SENSEX?

    The core objective of BSE SENSEX is to provide a benchmark that reflects the performance of the Indian stock market. By tracking the 30 largest companies from various sectors, the BSE SENSEX offers investors and analysts an accurate gauge of market trends and the Indian economy's health.

  8. How do I buy shares in SENSEX?

    You can buy shares in BSE SENSEX companies through a stockbroker, an online trading platform, or by investing in index funds or ETFs that track the BSE SENSEX index. These funds offer a convenient way to invest in all the companies included in the index with a single purchase.

  9. What is the criterion for selection and review for SENSEX?

    The BSE SENSEX companies are selected based on factors like market capitalization, liquidity, sector representation, and free-float market capitalization. Periodic reviews ensure that the index remains relevant by removing companies that no longer meet the criteria and replacing them with better-performing companies.

  10. At what frequency is the SENSEX calculation done?

    The BSE SENSEX is calculated in real-time during trading hours. The index value is updated every few seconds based on the latest stock prices of the 30 constituent companies, ensuring it reflects the current market conditions.

  11. What is the computing method of SENSEX?

    The BSE SENSEX is arrived at using the free-float market capitalization method. This approach accounts for shares open to public trading, while excluding those retained by promoters or the government. The total free-float market capitalization of the 30 companies is divided by a base value known as the index divisor.

  12. Who started SENSEX, and when was it launched?

    The BSE SENSEX was launched by the Bombay Stock Exchange (BSE) in 1986. The index was created to provide a reliable indicator of the Indian stock market's performance by tracking the largest companies listed on the exchange.

Frequently Asked Questions

How Many Companies In Sensex?

Answer Field

The Sensex is an index of the Bombay Stock Exchange (BSE) that considers 30 well-established and financially sound sensex companies listed on the exchange. These 30 companies are selected based on certain criteria set by the BSE. The Sensex is calculated using the free-float market capitalization method. As of 2023, the Sensex 30 companies cover 18 sectors, with the banking sector having the most dominant weight in the index, followed by IT and Oil & Gas.

Can I use the Sensex to make investment decisions, and how do I interpret its performance?

Answer Field

Yes, you can use the Sensex to make investment decisions, as it serves as a benchmark for the Indian equity market and provides information on the performance of constituent companies and industries.

For Sensex investing, you have two main options:

  • Direct investment: You can invest directly in the Sensex companies with the corresponding weightage in the index. This implies you can purchase stocks in the amount equal to the stock's weightage.

  • Index funds: You can invest in Sensex through index funds, which replicate the index by holding the same 30 stocks as the index. This option is more popular due to its passive management and lower expense ratio. 

To interpret the Sensex performance, you can analyse the performance of individual companies and industries by identifying their weaknesses and growth prospects. The Sensex movements are used as an indicator of market sentiments, with an increase in the Sensex value implying an increase in the price of most shares, and a fall indicating a decrease in the price of most shares.

 

Why Sensex has 30 stocks?

Answer Field

The Sensex has 30 stocks because it is a free-float market-weighted stock market index that constitutes 30 large and most actively traded corporations of India. These 30 constituents of Sensex are the largest corporations, and this list of 30 stocks is subject to revision by the BSE over time. The BSE follows screening criteria to shortlist Sensex 30 stocks, and all companies listed on the Bombay Stock Exchange (BSE) can be included in Sensex.

Who started Sensex?

Answer Field

The Sensex, or BSE Sensitive Index, was started on January 1, 1986, with the base year as 1979 and the base value at 100 points. The term "Sensex" was coined by stock market analyst Deepak Mohoni, and it is a combination of the words "Sensitive" and "Index". The sensex index reflects the stock market's sensitivity, where even small events can significantly impact stock prices. The Sensex consists of 30 stocks representing various sectors and is calculated using the free-float market capitalization-weighted methodology.

What is Sensex?

Answer Field

The Sensex, also known as the S&P BSE Sensex, is a benchmark index of the Bombay Stock Exchange (BSE) in India. It tracks the performance of 30 well-established and financially sound companies. Monitoring the Sensex price, Sensex share price, or the Sensex stock price helps investors understand the overall market trends and economic health. The Sensex index is widely regarded as a barometer of the Indian stock market's performance.

What is the core objective of Sensex?

Answer Field

The core objective of the Sensex is to provide a comprehensive indicator of the Indian stock market's performance by tracking the Sensex stock price of 30 prominent companies. It serves as a benchmark for portfolio performance and helps investors assess the effectiveness of their investment strategies based on the Sensex share price movements. By following the Sensex index, investors can gauge the overall health of the Indian economy.

How do I buy shares in Sensex?

Answer Field

To buy shares in the Sensex, you need to open a trading account with a brokerage firm. Once your account is set up, you can invest in the individual Sensex stocks listed in the index. Alternatively, you can invest in exchange-traded funds (ETFs) or index funds that track the Sensex index, providing diversified exposure to the entire index. Monitoring the Sensex price, Sensex share price, or the Sensex stock price can help you make informed decisions about your investments.

How to invest in BSE SENSEX stocks?

Answer Field

To invest in BSE SENSEX stocks, you can either buy individual shares of the companies listed in the BSE SENSEX index through a stockbroker or invest in an index fund or exchange-traded fund (ETF) that tracks the performance of the BSE SENSEX. These funds allow you to invest in all 30 companies at once, offering diversification and ease of management.

What are BSE SENSEX stocks?

Answer Field

BSE SENSEX stocks are the shares of the 30 largest and most actively traded companies on the Bombay Stock Exchange (BSE). These companies are selected based on various criteria such as market capitalization, liquidity, and sector representation, ensuring the index accurately reflects the overall market performance.

Can you trade shares on BSE SENSEX?

Answer Field

Yes, you can trade shares of companies included in the BSE SENSEX index just like any other stock listed on the Bombay Stock Exchange. You can buy or sell shares through a stockbroker or an online trading platform.

In which year was the BSE SENSEX index launched?

Answer Field

The BSE SENSEX index was launched in 1986. It was the first equity index introduced in India, and it continues to serve as a benchmark for the Indian stock market.

Can we buy BSE SENSEX today and sell it tomorrow?

Answer Field

Yes, you can buy BSE SENSEX stocks today and sell them tomorrow. This is known as intra-day trading. However, it's essential to consider transaction costs and market volatility when making short-term trades.

What is SENSEX?

Answer Field

SENSEX, or the BSE SENSEX, is a stock market index that tracks the performance of 30 of the largest and most actively traded companies on the Bombay Stock Exchange. It is considered a key indicator of the overall health and performance of the Indian stock market.

What is the core objective of SENSEX?

Answer Field

The core objective of BSE SENSEX is to provide a benchmark that reflects the performance of the Indian stock market. By tracking the 30 largest companies from various sectors, the BSE SENSEX offers investors and analysts an accurate gauge of market trends and the Indian economy's health.

How do I buy shares in SENSEX?

Answer Field

You can buy shares in BSE SENSEX companies through a stockbroker, an online trading platform, or by investing in index funds or ETFs that track the BSE SENSEX index. These funds offer a convenient way to invest in all the companies included in the index with a single purchase.

What is the criterion for selection and review for SENSEX?

Answer Field

The BSE SENSEX companies are selected based on factors like market capitalization, liquidity, sector representation, and free-float market capitalization. Periodic reviews ensure that the index remains relevant by removing companies that no longer meet the criteria and replacing them with better-performing companies.

At what frequency is the SENSEX calculation done?

Answer Field

The BSE SENSEX is calculated in real-time during trading hours. The index value is updated every few seconds based on the latest stock prices of the 30 constituent companies, ensuring it reflects the current market conditions.

What is the computing method of SENSEX?

Answer Field

The BSE SENSEX is arrived at using the free-float market capitalization method. This approach accounts for shares open to public trading, while excluding those retained by promoters or the government. The total free-float market capitalization of the 30 companies is divided by a base value known as the index divisor.

Who started SENSEX, and when was it launched?

Answer Field

The BSE SENSEX was launched by the Bombay Stock Exchange (BSE) in 1986. The index was created to provide a reliable indicator of the Indian stock market's performance by tracking the largest companies listed on the exchange.

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