What is Sensex?

What is Sensex?

Do you know What is Sensex. You must have often read or seen the word Sensex on TV or in newspapers. Sometimes you see that Sensex has gone up so many points today and sometimes you see that Sensex has fallen so many points today.

Whenever you think of investing in the share market, then you must have come across Sensex in your mind. But you do not understand the meaning of these words because you do not know what is Sensex? So today’s post is focused on Sensex. Today, through this post of ours, we will know what is Sensex and what is the work done through it?

What is Sensex?

We have told you in our earlier post what is Nifty. Today we are talking about Sensex. So Sensex is also similar to Nifty in a way but only 30 companies are listed in Sensex as compared to Nifty. Where Nifty is also called Nifty 50 because 50 companies are listed in it. Let us know in detail about what is Sensex.

Sensex :-

This word is made up of the words sensitive and index. This means that it is a sensory index.

Sensex is the BenchMark index of our Indian Stock Market, which tells the rise and fall of the shares listed in BSE (Bombay Stock Exchange). Through this we get information about the performance of the 30 largest companies listed in it.

Talking about the Sensex, it is the oldest stock market index in India, which was started in 1986.

What is Sensex?

Sensex which is a stock market index and its most important function is to keep watching the price of all the shares of listed companies in the stock market and then after a day’s work give us an average value so that we can get listed in the stock market. It is easy to get information about the rise and fall in the prices of the shares of the companies.

Bombay Stock Exchange (BSE), which is the oldest stock exchange in India, has a total of 30 major Indian companies. These companies are very big if seen according to the market capitalization, it is currently 37% of the total Indian GDP.

These companies work in a way to set the trend of the Indian market. And simply put, the index made to measure the prices of the shares of big companies of India, which keeps an eye on the increasing and decreasing prices of the shares of these companies, is called Sensex.

What is Sensex?

On what basis 30 Companies are selected?

The things that the Index Committee takes into account while selecting 30 companies to be included in the Sensex are as follows :-

1) The shares of that company have been listed on the stock exchange for at least 1 year or more.

2) It is mandatory to buy and sell the stock of that company on all the days that the stock market is open within the last one year.

3) According to the number and value of average trades per day, these companies must be among the largest 150 companies in the country.

These are the factors which are taken into consideration by the index committee for listing.

Advantages of Sensex

Advantages of Sensex :-

Well, the biggest advantage of the Sensex is that through this, the investor can know and understand the future changes in the market and accordingly invest his money in the right way.

But we also have some such benefits from the Sensex that they do not have much effect or benefit directly but are very useful indirectly. The movement of rupee keeps on changing according to the market and when the rupee is strong then things get cheaper in the country.

Let us know about some different benefits.

1) When companies see Sensex going up, then investors also want to invest money in such companies and when a lot of money is collected from the investors then the companies grow and expand. And whenever a company expands, it needs new people for that, so they will give jobs to more people and this will directly mean lack of unemployment.

2) When the stock market is good and the Sensex goes up, then many outside investors start coming in the country and when they invest money in Indian companies, it will increase the rupee. And rupee strengthens against foreign currency. And when the rupee strengthens, it makes things cheaper.

https://shareinfobazaar.com/stock-price-will-increase-or-decrease/

For example, foreign imported salmon will be available at lower prices than before due to the rapid depreciation of the rupee.

The Indian stock market is constantly moving towards heights, at a time when it was started in 1990, then the Sensex used to be only one thousand, but in today’s time this figure has reached five digit number, in today’s time it has crossed 30,000. And is creating new records every day.

We expect it to scale new heights in future also and help investors earn profits.

Also Read :-

https://shareinfobazaar.com/dividend/
https://shareinfobazaar.com/how-to-become-millionaire-from-share-market/
https://shareinfobazaar.com/great-formula-of-share-market/

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