Stock market analyst Mr. Deepak Mohoni first time introduced the term Sensex. For your knowledge, Sensex is an index of Bombay Stock Exchange. It is derived from two words Sensitive and Index. It contains 30 most traded stocks by volume from different sectors of Indian economy.
Sensex is one of the major stock market benchmarks of Indian Stock Market. The S&P BSE SENSEX (also known as the BSE 30 or simply the SENSEX) is an Indian stock market index that shows cumulative performance of the 30 largest and most actively traded shares listed on the Bombay Stock Exchange (BSE) in India.
It was first introduced in 1986 and is considered to be the benchmark index for the Indian stock market.
The SENSEX has 30 stocks that are selected based on their market capitalization and liquidity. Which company will be listed in the index is calculated using a free float market capitalization weighted methodology.
One can indirectly invest in the BSE SENSEX by choosing Sensex exchange traded mutual funds and other investment products in India. ETF funds track the SENSEX and offer returns that are closely correlated to its performance.
Those who lacks stock market knowledge and fear to directly invest in stocks listed on the exchange can buy ETF schemes. By doing so, you are directly betting on Indian economy. Everyone knows where Indian economy will be after 20-30 years?
The SENSEX is a benchmark index widely followed by investors around the world. Nifty and Sensex are considered to be barometers of the Indian economy. The index is used to measure the performance of the Indian stock market and is considered amongst the most accurate indicators of the Indian economy.
- SENSEX is a stock market index that represents the performance of the 30 largest and most actively traded stocks listed on the Bombay Stock Exchange (BSE) in India.
- It is considered to be the benchmark index for the Indian stock market and is widely followed by investors and market analysts around the world as an indicator of the Indian economy.
- It is also used as a benchmark for the performance of mutual funds, exchange-traded funds, and other investment products in India.