What is Sensex?

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 The Sensex, short for the Sensitive Index, is one of the most important stock market indices in India. Launched in 1986, it is managed by the Bombay Stock Exchange (BSE) and serves as a benchmark for the performance of the Indian stock market. Understanding the Sensex is crucial for anyone interested in investing in Indian equities, as it provides valuable insights into market trends and investor sentiment.


Understanding Sensex


The Sensex comprises 30 of the largest and most actively traded stocks on the BSE. These stocks represent various sectors of the economy, including finance, IT, healthcare, consumer goods, and more. The index is calculated based on the free-float market capitalization of its constituent companies, meaning that it considers only the shares available for trading in the market, excluding locked-in shares held by promoters or government.

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