"Are you curious about the stock market and how it impacts the Indian economy? Have you heard the term “Sensex” thrown around in financial discussions, but aren’t sure what is Sensex? Fear not, because in this blog post, we’re going to explain what is Sensex and how it works.
At its core, Sensex is a stock market index. What is the Sensex full form? It is an abbreviation for the Sensitive Index. It represents the performance of the top 30 Bombay Stock Exchange (BSE) companies. So, people talk about the Sensex, they’re essentially referring to the overall performance of these 30 companies.
The performance of these top 30 companies can have a significant impact on the Indian economy as a whole. When the Sensex is up, it’s often seen as a sign of a strong and growing economy, which can lead to increased investor confidence and foreign investment.
To give you an idea of just how much of an impact Sensex can have, consider this: During the COVID-19 pandemic in 2020, the Sensex fell by over 38% in just a few weeks. This had a major impact on the Indian economy, as businesses struggled and many people lost their jobs.
Let’s dive into the nitty-gritty of the Sensex and understand what it is all about.
What is Sensex exactly? The Sensex is a stock market index that tracks the performance of the top 30 companies listed on the Bombay Stock Exchange (BSE). It is a weighted index, meaning that the stocks with a higher market capitalization have a greater influence on the index’s movement.
Now, let’s talk about how is Sensex calculated. The Sensex was previously calculated using the weighted market capitalization method. However, the BSE Sensex value has been calculated using the Free Float Market Capitalization method since September 2003.
Understanding what is Sensex and how it works is crucial to gaining a better understanding of the Indian economy and the stock market as a whole."
