The SENSEX (S&P BSE SENSEX) is a free-float market-weighted stock market index of 30 stocks from the Bombay Stock Exchange (BSE). It is a price-weighted index. The base value of the index was taken as 100 on January 1, 1978. The index is calculated using the base value of 100. The index is calculated on a total market capitalization basis. SENSEX Full Form
The SENSEX was first calculated on June 30, 1986, with a base value of 100. The index reached the 10,000 mark for the first time on November 5, 2007. The index reached the 20,000 mark for the first time on December 11, 2013. The index reached the 30,000 mark for the first time on July 25, 2017.
The SENSEX is a stock market index of 30 major Indian companies. It is compiled and published every day by the Bombay Stock Exchange (BSE) and is regarded as the benchmark index of the Indian stock market.
The SENSEX is called SENSEX because it is an acronym for the Bombay Stock Exchange Sensitive Index.
The term SENSEX is derived from "Sensitive Index," representing the benchmark stock index of the Bombay Stock Exchange (BSE). It was coined by Deepak Mohoni, a stock market analyst, as a short and impactful name for the Stock Exchange Sensitive Index.
The SENSEX tracks the performance of the top 30 financially strong and actively traded companies listed on the BSE. Since its introduction in 1986, it has been a key indicator of market trends, investor confidence, and economic growth in India. The name SENSEX reflects its role in measuring the sensitivity and movement of the Indian stock market, making it one of the most widely followed indices in the country.
There is no single answer to this question as both the exchanges are quite different in their functioning. The National Stock Exchange (NSE) is computer-based, while the Bombay Stock Exchange (BSE) is an exchange where trading is done through an open outcry system. Further, the BSE is older than the NSE and has many listed companies.
| Also Check | |
| PCR Full Form | MNC Full Form |
| NSG Full Form | GST Full Form |
| CFL Full Form | BODMAS Full Form |
| CRT Full Form | CMOS Full Form |
| RADAR Full Form | XML Full Form |
In India, the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) are the two leading stock exchanges, facilitating stock trading and investment. While both serve the same purpose, they have distinct features that set them apart.
There is no definitive answer to this question as it depends on individual preferences and priorities. Some people may prefer the more established and well-known BSE, while others prefer cutting-edge and innovative NSE. Ultimately, it is up to the individual investor to decide which exchange is better for them.
The SENSEX (Stock Exchange Sensitive Index) is the benchmark index of the Bombay Stock Exchange (BSE), representing the performance of 30 large, financially strong companies across various sectors. It reflects overall market trends, investor sentiment, and economic conditions. Introduced in 1986, the SENSEX uses a base value of 100 (as of 1978-79) to track market fluctuations. It is updated every 15 seconds during trading hours to provide real-time insights into the Indian stock market’s health.
The SENSEX is a weighted stock market index calculated based on the free-float market capitalization of its 30 listed companies. The market capitalization is determined using:
Market Cap
Market Cap=Stock Price × Number of Shares Outstanding
The free-float method considers only publicly traded shares, ensuring a more accurate representation of market movements. This calculation helps investors track market growth, trends, and volatility efficiently.
Investing in SENSEX shares is simple and can be done through an online stock broker. Follow these steps:
A Demat (Dematerialized) account is an electronic securities account where investors can store, buy, and sell stocks, bonds, and mutual funds in digital form. It eliminates the need for physical share certificates, making transactions secure, fast, and hassle-free.
Key Features of a Demat Account:
✔ Holds shares electronically for easy buying and selling.
✔ Reduces paperwork and risk of document loss.
✔ Ensures faster transactions for seamless trading.
✔ Required for stock market investments in India.
Opening a Demat account is essential for investing in SENSEX shares and other financial securities. It allows investors to participate in the stock market efficiently and securely.
The benefits of the SENSEX are many. Some of the most important benefits are:
The full form of SENSEX is Stock Exchange Sensitive Index. It is the benchmark index of the Bombay Stock Exchange (BSE) and represents the performance of the top 30 companies listed on BSE based on market capitalization.
SENSEX is crucial because it acts as a barometer of the Indian stock market’s performance. A rise in the SENSEX indicates a bullish market, while a decline signals a bearish trend, helping investors and analysts understand market movements.
The SENSEX is calculated using the free-float market capitalization method. This means only the shares available for public trading are considered, ensuring an accurate reflection of market trends and investor confidence.
SENSEX fluctuations are driven by multiple factors such as economic policies, inflation rates, corporate earnings, global market trends, and investor sentiment. Any significant economic or political event can impact the index.
Investors use SENSEX trends to assess market conditions before making investment decisions. A rising SENSEX suggests a strong market, making it ideal for long-term investments, while a declining trend may indicate caution for short-term traders.