All About the BSE Sensex: A Comprehensive Guide

What is the BSE Sensex?

The BSE Sensex (Bombay Stock Exchange Sensitive Index) is the oldest stock market index in India. It is a composite index of 30 of the largest and most actively traded stocks on the Bombay Stock Exchange (BSE).

The Sensex was created in 1986 with a base value of 100. It is calculated by taking the sum of the market capitalization of the 30 constituent stocks and dividing it by a divisor, which is adjusted from time to time as the market capitalization of the stocks change.

History of the Sensex

The Sensex was launched on January 1, 1986, with a base value of 100. The index has since then grown significantly, reaching a record high of over 60,000 in January 2023.

The Sensex has been through several ups and downs over the years, reflecting the performance of the Indian economy.

Get Real-Time Sensex

You can get real-time Sensex updates from the official website of the BSE or from several other financial news websites.

Why is the Sensex Important?

The Sensex is widely reported in both domestic and international markets through print as well as electronic media.

It is considered a barometer of the Indian economy and is often used as a benchmark for the performance of other stock markets.

How is the Sensex Calculated?

The Sensex is calculated by taking the sum of the market capitalization of the 30 constituent stocks and dividing it by a divisor, which is adjusted from time to time as the market capitalization of the stocks change.

The market capitalization of a stock is calculated by multiplying the number of shares outstanding by the current market price of the stock.

What are the Constituent Stocks of the Sensex?

The 30 constituent stocks of the Sensex are selected by the BSE based on various factors, including market capitalization, trading volume, and industry representation.

Some of the largest and most well-known companies in India are included in the Sensex, such as Reliance Industries, HDFC Bank, and Infosys.

How Can I Invest in the Sensex?

You can invest in the Sensex through a variety of investment vehicles, such as index funds, exchange-traded funds (ETFs), and mutual funds.

Index funds and ETFs are passively managed funds that track the performance of a particular index, such as the Sensex.

Mutual funds are actively managed funds that invest in a portfolio of stocks, which may include stocks included in the Sensex.