CandleFocus Glossary Editor
The Sensex, or S&P Bombay Stock Exchange Sensitive Index, is the premier stock market index for trading on the Bombay Stock Exchange (BSE). Representing 30 of the most capitalized and actively traded stocks on the BSE, the Sensex tracks changes in the stock prices on the BSE with a base reference value of 1000 points in 1986. Created by the S&P Global, the Sensex is calculated in Indian Rupees and US dollars.
The Sensex index is measured and monitored by S&P and is one of the most important stock exchanges in India. It offers investors the opportunity to monitor the growth of Indian stocks and make wise and informed investment decisions. The Sensex is classified into blue-chip, mid-cap and small-cap companies depending on the company size. It is float-adjusted and market capitalization-weighted to ensure accurate and reliable results.
The Sensex has grown, along with Indian’s economy since the country opened up its economy in 1991. Over the decades, it has served as a bellwether for the progress of the economy and the performance of the capital markets. In 2000, the Sensex hit the 5,000 mark for the first time. After the global financial crisis in 2008, it hit the 17,000 mark in July 2014.
The Sensex provides a barometer for the economic activity in India, including changes in foreign direct investments (FDI), global economic uncertainty, and market sentiment. This enables investors to keep abreast of market fluctuations and make decisions based on real-time data.
The Sensex has become the most widely tracked benchmark index in India and its performance provides insight into the future of the economy. Investing in the Sensex gives investors exposure to Indian companies operating in different sectors, such as IT, banking, oil & gas, and automobiles. The Sensex has become increasingly popular among international investors as well as domestic investors, helping to build investor confidence and shoring up the Indian equity market.
The Sensex index is measured and monitored by S&P and is one of the most important stock exchanges in India. It offers investors the opportunity to monitor the growth of Indian stocks and make wise and informed investment decisions. The Sensex is classified into blue-chip, mid-cap and small-cap companies depending on the company size. It is float-adjusted and market capitalization-weighted to ensure accurate and reliable results.
The Sensex has grown, along with Indian’s economy since the country opened up its economy in 1991. Over the decades, it has served as a bellwether for the progress of the economy and the performance of the capital markets. In 2000, the Sensex hit the 5,000 mark for the first time. After the global financial crisis in 2008, it hit the 17,000 mark in July 2014.
The Sensex provides a barometer for the economic activity in India, including changes in foreign direct investments (FDI), global economic uncertainty, and market sentiment. This enables investors to keep abreast of market fluctuations and make decisions based on real-time data.
The Sensex has become the most widely tracked benchmark index in India and its performance provides insight into the future of the economy. Investing in the Sensex gives investors exposure to Indian companies operating in different sectors, such as IT, banking, oil & gas, and automobiles. The Sensex has become increasingly popular among international investors as well as domestic investors, helping to build investor confidence and shoring up the Indian equity market.