SENSEX: A Comprehensive Guide to India's Benchmark Stock Index
What is SENSEX?
The Sensex, or S&P BSE SENSEX, is India's benchmark stock index. It tracks the performance of the 30 largest and most actively traded companies listed on the Bombay Stock Exchange (BSE).
The Sensex is widely reported in domestic and international markets and serves as a barometer of the Indian economy's overall health.
SENSEX: Key Facts
- Launched on January 1, 1986
- Consists of 30 blue-chip companies
- Weighted by market capitalization
- Calculated using a free-float methodology
- Reflects the performance of various sectors in the Indian economy
How is the SENSEX Calculated?
The Sensex is a market-capitalization-weighted index, meaning the market capitalization of each company in the index influences its impact on the overall index value.
SENSEX: Historical Performance
The Sensex has a long and eventful history, with periods of growth and volatility. Over the years, it has consistently outperformed other major global indices.
Factors Affecting SENSEX
Various economic, political, and global factors can influence the movement of the Sensex
- Corporate earnings
- Interest rate changes
- Inflation
- Political stability
- Foreign investment flows
Using SENSEX for Decision-Making
The SENSEX is a valuable tool for investors to gauge the overall health of the Indian stock market.
Conclusion
The Sensex is an important indicator of the performance of the Indian economy. By understanding the factors that affect it, investors can make informed decisions about their investments.
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