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Sensex

The Sensex, short for the Sensitive Index, is the benchmark stock market index of the Bombay Stock Exchange (BSE) in India. It is widely regarded as one of the key indicators of the Indian stock market’s performance and serves as a barometer for the country’s economic health. The index consists of the top 30 financially stable and actively traded companies listed on the BSE.

The history of the Sensex dates back to January 1, 1986, when it was first launched with a base value of 100 points. At that time, it comprised of the shares of 30 companies listed on the BSE. Over the years, the Sensex has grown both in terms of its composition and importance. It has become a crucial tool for investors, analysts, and policymakers to gauge the direction and trends of the Indian stock market.

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Sensex, short for the Sensitive Index, is the benchmark stock market index of the Bombay Stock Exchange (BSE) in India. It represents the performance of the top 30 large and financially stable companies listed on the BSE.

The core objective of Sensex is to provide a broad and representative overview of the performance of the Indian stock market. It serves as a key indicator of the overall health and direction of the country’s economy.

To buy shares in Sensex, you need to open a demat account and trading account with a registered stockbroker. Once your account is set up, you can place buy orders for individual stocks that are part of the Sensex index.

The criterion for selecting and reviewing stocks in the Sensex is based on factors like market capitalization, liquidity, and industry representation. The index is periodically reviewed and rebalanced to ensure it remains reflective of the market.

The Sensex is computed using the free-float market capitalization-weighted methodology. It takes into account the market value of each stock in the index, adjusting for the proportion of shares available for public trading.

The Sensex was launched on January 1, 1986, by the BSE. It was initiated with a base value of 100 points.

To start trading in Sensex, you need to follow these steps: open a demat and trading account, research and select the stocks you want to invest in, place buy orders through your stockbroker, and monitor your investments regularly.

The percentage returns delivered by the Sensex until now vary depending on the specific time period considered. Historically, the Sensex has generated average annual returns of around 15-18% over the long term, but it is important to note that past performance is not indicative of future results.

Sensex

The history of the Sensex dates back to January 1, 1986, when it was first launched with a base value of 100 points. At that time, it comprised of the shares of 30 companies listed on the BSE. Over the years, the Sensex has grown both in terms of its composition and importance. It has become a crucial tool for investors, analysts, and policymakers to gauge the direction and trends of the Indian stock market.

The Sensex has witnessed significant milestones and fluctuations throughout its history. It has weathered various market cycles, including booms and recessions, reflecting the dynamics of the Indian economy. The index has been periodically reviewed and modified to ensure its representation of the evolving market. Today, it includes companies from various sectors such as finance, energy, technology, and consumer goods.

The Sensex has become an integral part of the Indian financial landscape, attracting domestic and international investors. It serves as a crucial reference point for portfolio managers, traders, and investors seeking to evaluate the performance of their investments. The index has also gained global recognition, reflecting the growing significance of the Indian economy in the world market.

Ashok Tata

Ashok Tata

I'm a finance enthusiast on a mission to empower you with practical tips, insightful advice, and inspiring stories for a brighter financial future. Let's take control of our finances together!.

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