The benchmark index of the BSE, tracking the performance of 30 well-established and financially sound companies.
The BSE Sensex (Sensitivity Index) is the benchmark index of the Bombay Stock Exchange (BSE). Composed of 30 of the largest, most actively traded stocks representing key industrial sectors, it is India's oldest and most widely tracked market index.
Like Nifty, the Sensex is calculated using the free-float market capitalization-weighted method. The index base year is 1978-79, with a base value of 100. It is adjusted dynamically to ensure it accurately reflects market capitalization changes and sector representation of India's blue-chip companies.
For decades, Sensex was the sole measure of Indian stock market health. Its milestones (crossing 10k, 50k, 70k) represent historic markers of Indian economic growth and wealth creation. Index fund managers use it to design passive investment portfolios that match the returns of the top Indian corporate giants.
If the Sensex drops by 500 points, it indicates a general sell-off in India's leading 30 companies. If you hold a basket of blue-chip stocks, your portfolio is likely to see a temporary decline in value corresponding to this index move.
An Index Committee consisting of stock market experts, economists, and exchange officials reviews and selects the 30 component stocks based on market cap, liquidity, trading frequency, and sector representation.
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Download Free Android AppThe leading stock exchange in India, located in Mumbai, known for its electronic trading platform and Nifty index.
Asia's oldest stock exchange, established in 1875, based in Mumbai with the flagship Sensex index.
The benchmark stock index of the NSE, representing the weighted average of 50 of the largest Indian companies.