SENSEX Full Form

Sensex stands for Stock Exchange Sensitive Index.

What is SENSEX?

Sensex indicates the most popular index of the 30 companies listed in the Bombay stock exchange. It gives an idea when stocks go up and down. The stock market is an indicator of shares put up by corporate companies.

Origin: 

BSE (BOMBAY STOCK EXCHANGE) came into existence from 1st January 1986 in the stock market of India. Its base-level started on 1st April 1979 for building up the future endeavours.

Why is it Called SENSEX?

It is a portmanteau of two terms- Sensitive and Index which was originated by a stock market analyst Mr Deepak Mohan which identifies the BSE.

NSE Vs. BSE:

NSE was established in 1992, while BSE came into existence 1975. NSE stands for NATIONAL STOCK EXCHANGE & BSE stands for BOMBAY STOCK EXCHANGE. BSE referred to SENSEX while NSE is known for NIFTY.

What is a Better NSE or BSE?

BSE (BOMBAY STOCK EXCHANGE) is an older version of the stock market while NSE ( NATIONAL STOCK EXCHANGE) is an upgraded version of BSE. It deals with the traditional method while NSE is a good option for those who want day trading. Similarly, both stock markets have their own values and expectations of business by stakeholder. Investors need to understand the need of options while choosing between NSE and BSE.

How Does SENSEX Work?

During market hours whatever trade has been included by a corporate investor is calculated in every 15 seconds of working hours. This process goes the whole day of reflecting shares increasing and decreasing. Every time a person needs to track the stock reflecting in a day. At last, which company’s stocks will be the highest during closing time, it will be declared as the closing value of that stock even if it indicates the lowest stock value as well of those particular companies 

How is SENSEX Calculated?

The market capitalization of each 30 companies will be included in a graph of stocks division, for example, the opening value of market capital based on the performance of the 30 companies stock is 9060000 and the base index of 1978-1979 is 60000. Then the index division becomes 100/60000 and Sensex index value equals 9060000*100/60000 =15100 for that day. 

How to Buy SENSEX Shares?

To invest in Sensex shares, one needs to connect with a broker who knows in and out of the stock market. Even it can be registered online for opening a Demat account with all the instructions followed by the broker. This is the simple process of buying Sensex shares. 

What is a Demat Account?

This account is known specifically to hold shares in e-format. This is a simple way for the one who is interested in online trading.

Is it Good to Invest in Stocks?

Yes, it has a risk in the market. The main focus of stock should be on long term investment which has a low risk of failure, I personally prefer to buy those shares which companies have good future success without any future recession but that is my general point of view. Don't invest directly on high-end stock. Try to choose low-cost investment index funds.

Benefits of SENSEX: 

  • The smart technique of gaining knowledge of stocks.

  • All information about stocks will be delivered on time as per stock exchange guidelines. 

  • Imposed with all legal supervision abide by the BSE rules and regulation for investors safety.

FAQ (Frequently Asked Questions)

Q1: How is Sensex Calculated?

Ans: The calculation of Sensex involves dividing the Free-float market capitalization of 30 companies in the Index by a number called the Index Divisor. The Divisor is the only link to the original base period value of the Sensex

Q2: What is the Use of Sensex?

Ans: The Bombay Stock Exchange's Sensitive Index, also called Sensex or BSE Sensex, is one of the leading stock market benchmark indices in India. It tracks the movement of stock prices on the exchange and functions as an indicator of market sentiments.

Q3: What is Mean of Sensex?

Ans: SENSEX is an index/benchmark used to measure the performance of the top 30 companies listed in BSE(Bombay stock exchange). If the Sensex goes up, it means that the prices of the stocks of most of the major companies on the BSE have gone up.