Sensex is the stock market index for the Bombay Stock Exchange (BSE) in India. It tracks the performance of 30 well-established and financially sound companies.
Sensex is important because it reflects the overall performance of the Indian stock market. When Sensex goes up, it usually means the market is doing well, and when it goes down, it shows the market is struggling.
Sensex was introduced in 1986 to track the top 30 companies on the BSE based on their market value. It has since become a key indicator of India’s economic health.
Sensex is calculated using the free-float market capitalization method. This method only considers the market value of shares that are available for public trading, not the total number of shares.
The Sensex includes top companies from various sectors, such as Reliance Industries, Tata Consultancy Services (TCS), and HDFC Bank. These companies represent the diverse sectors of the Indian economy.
Several factors can affect the Sensex, including global events, government policies, economic data, and the financial performance of the listed companies. These factors can cause the Sensex to rise or fall.
Investors pay close attention to the Sensex. A rising Sensex indicates that investors are confident and buying more stocks, while a falling Sensex can make investors cautious and less willing to invest.
Many investors use the Sensex as a benchmark to compare the performance of their own stock portfolios. If their investments are doing better than the Sensex, they consider their performance good.
Sensex is the index for the BSE, while Nifty is the index for the National Stock Exchange (NSE). Both indices are important indicators of the Indian stock market, but they track different groups of companies.
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