sensex index - 10 things to know with detail
- 1. What is Sensex Index? The Sensex Index, also known as the S&P BSE Sensex, is a benchmark index of the Bombay Stock Exchange (BSE) in India. It consists of the top 30 companies listed on the BSE based on market capitalization.
- 2. Calculation of Sensex Index The Sensex Index is calculated using the free-float market capitalization method. This means that the index is weighted by the market capitalization of each constituent company, adjusted for the number of shares available for trading.
- 3. Importance of Sensex Index The Sensex Index is widely considered to be a barometer of the Indian stock market and the overall economy. It is used by investors, analysts, and policymakers to gauge the health and performance of the Indian stock market.
- 4. Constituent Companies The Sensex Index consists of 30 large-cap companies from various sectors such as banking, IT, energy, and consumer goods. Some of the key companies in the index include Reliance Industries, HDFC Bank, Infosys, and Tata Consultancy Services.
- 5. Historical Performance The Sensex Index was first compiled in 1986 with a base value of 100. Since then, it has grown significantly and has become one of the most closely watched stock market indices in India.
- 6. Factors Affecting Sensex Index The Sensex Index is influenced by a variety of factors, including the performance of its constituent companies, economic indicators, global market trends, and geopolitical events.
- 7. Market Capitalization The market capitalization of the Sensex Index is constantly changing as the stock prices of its constituent companies fluctuate. This can impact the overall value of the index and reflect changes in investor sentiment.
- 8. Sensex Index vs. Nifty Index The Sensex Index is often compared to the Nifty Index, which is another major stock market index in India. While the Sensex tracks the top 30 companies on the BSE, the Nifty tracks the top 50 companies on the National Stock Exchange (NSE).
- 9. Sensex Index Performance The performance of the Sensex Index is closely monitored by investors and analysts to assess market trends and make investment decisions. A rising Sensex indicates a bullish market, while a falling Sensex suggests a bearish market.
- 10. Investing in Sensex Index Investors can gain exposure to the Sensex Index through index funds, exchange-traded funds (ETFs), and derivatives. By investing in the Sensex Index, investors can benefit from the overall growth of the Indian stock market and diversify their investment portfolio.