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What is Sensex in the stock market?

Updated: 9/11/2023
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Sensex refers to "Sensitivity Index" and is generally associated with the Stock Market indices. There are currently two major stock exchanges in India, The Bombay Stock exchange (BSE) and The National Stock Exchange (NSE).

The BSE Sensex is an indicator of all the major companies of the BSE. The Nifty is an indicator of all the major companies of the NSE.

If the Sensex goes up, it means that the prices of the stocks of most of the companies under the BSE Sensex (30 companies) have gone up. If the Sensex goes down, this tells you that the stock price of most of the major stocks on the BSE have gone down.

Today the BSE Sensex constitutes of the following companies:

Company Name (Industry)

  1. ACC (Cement - Major)
  2. Bharti Airtel (Telecommunications - Service)
  3. BHEL (Engineering - Heavy)
  4. DLF (Construction & Contracting - real estate)
  5. Grasim (Diversified)
  6. HDFC Bank (Banks - Private Sector)
  7. HDFC (Finance - Housing)
  8. Hindalco (Aluminium)
  9. Hindustan Unilever Ltd (Personal Care)
  10. ICICI Bank (Banks - Private Sector)
  11. Infosys Ltd (Computers - Software)
  12. ITC Ltd(Cigarettes)
  13. Jaiprakash Associates (Construction, Real Estate, Cement etc.)
  14. Larsen & Toubro (Construction, Diversified)
  15. Mahindra and Mahindra (Auto - Cars & Jeeps)
  16. Maruti Suzuki (Auto - Cars & Jeeps)
  17. NTPC (Power - Generation/Distribution)
  18. ONGC (Oil Drilling And Exploration)
  19. Ranbaxy Labs (Pharmaceuticals)
  20. Reliance Communications (Telecommunications - Service)
  21. Reliance Industries Limited (Diversified)
  22. Reliance Infrastructure (Power - Generation/Distribution)
  23. State Bank of India (Banks - Public Sector)
  24. Sterlite Industries (Metals - Non Ferrous)
  25. Sun Pharma (Pharmaceuticals)
  26. Tata Motors (Auto - LCVs/HCVs)
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Q: What is Sensex in the stock market?
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What is today's trend of Indian stock market?

The Indian stock market as represented by the SENSEX has been in a pronounced uptrend for the past ten years. From a low of about 17,500 last August the SENSEX has climbed to a recent price of about 25,550 or a gain of 46 percent. The SENSEX, also known as the S&P Bombay Stock Exchange Sensitive Index, is comprised of 30 of the largest blue chip companies operating in India. In 2004 the SENSEX was at 5,000. The rise of the Indian stock market was briefly interrupted by the global financial crisis of 2008 when the SENSEX plunged from 20,000 to about 10,000.


Role of foreign institutional investors in Indian stock market with special reference to sensex tumbling?

Foreign Institutional Investors (FIIs) play a significant role in the Indian stock market, including the movement of the Sensex. Here's an overview of their role and their impact on market dynamics: Investment Inflows: FIIs are institutional investors from overseas who invest in Indian financial markets, including stocks. Their investment inflows can have a considerable impact on market liquidity and overall demand for Indian equities. Market Participation: FIIs are active participants in the stock market, buying and selling shares based on their investment strategies and market outlook. Their trading activities can influence stock prices and contribute to the overall market sentiment. Liquidity and Volume: FIIs often bring liquidity to the market due to the large capital they invest. Their participation can increase trading volumes, enhance market efficiency, and improve price discovery. Market Sentiment and Confidence: FIIs' investment decisions and actions can influence market sentiment and investor confidence. Positive or negative outlooks from FIIs may lead to increased or decreased investor participation, impacting market trends. Foreign Capital Flows: The entry or exit of FIIs' capital in the Indian stock market can affect the overall foreign capital inflows into the country. Changes in foreign investment trends can impact currency exchange rates and the balance of payments. Sensex Movement: The Sensex, a widely followed stock market index in India, represents the overall performance of the Indian stock market. FIIs' buying or selling activities, along with other domestic and international factors, can contribute to the movement of the Sensex.


What happens when the sensex rises?

If the Sensex goes up, it means that the prices of the stocks of most of the companies under the BSE (Bombay Stock Exchange) Sensex (30 companies) have gone up. If the Sensex goes down, this tells you that the stock price of most of the major stocks on the BSE have gone down. Simlpe! :)


How sensex in BSE is calculated?

BSE Stand for Bombay Stock Exchange. It is India's Oldest Stock Exchange with listing of over 4000 scripts with it. This not fully automated yet but progress towards full automation is underway. SENSEX is major index of BSE and it comprise of 30 scripts from different sectors. Each stock in SENSEX is is having indivisual weight according to there percentile market cap. Visit BSE official Site: http://www.bseindia.com so see what different weight factor is given to which script.


What are the Ten indexes of stock market of India?

The two main stock indices of India are: * Bombay Stock Exchange - BSE Sensex * National Stock Exchange - Nifty Some other stock indices of NSE are: * CNX Nifty Junior * CNX 100 * S&P CNX 500 * CNX Midcap Apart from this, both NSE and BSE have indices for the large industries. Like BSE Bankex (For banking) and so on..

Related questions

How can you understand the ups and downs of sensex?

SENSEX is an index of 30 companies listed on the Bombay Stock Exchange. SENSEX has been the main measure of the health of the Indiana stock market.


What is the name of the stock market in India?

The Indian stock market is called the BSE Sensex which is short for Bombay Stock Exchange Sensitive Index.


What is today's trend of Indian stock market?

The Indian stock market as represented by the SENSEX has been in a pronounced uptrend for the past ten years. From a low of about 17,500 last August the SENSEX has climbed to a recent price of about 25,550 or a gain of 46 percent. The SENSEX, also known as the S&P Bombay Stock Exchange Sensitive Index, is comprised of 30 of the largest blue chip companies operating in India. In 2004 the SENSEX was at 5,000. The rise of the Indian stock market was briefly interrupted by the global financial crisis of 2008 when the SENSEX plunged from 20,000 to about 10,000.


What is the common abbreviation of term sensitive index?

The common abbreviation for the term "sensitive index" is "Sensex." It is the stock market index of the Bombay Stock Exchange in India, comprising a select group of top companies.


Sensex stands for?

Sensex is the Index value of one of the stock exchanges in india - the Bombay Stock Exchange (BSE)


When was the highest EXC point achieved in Sensex stock?

The highest EXC point in Sensex stock was achieved on May 17, 2013. On that date, the Bombay Stock Exchange Sensitive Index (Sensex) reached a record high of 20, 286.12.


Role of foreign institutional investors in Indian stock market with special reference to sensex tumbling?

Foreign Institutional Investors (FIIs) play a significant role in the Indian stock market, including the movement of the Sensex. Here's an overview of their role and their impact on market dynamics: Investment Inflows: FIIs are institutional investors from overseas who invest in Indian financial markets, including stocks. Their investment inflows can have a considerable impact on market liquidity and overall demand for Indian equities. Market Participation: FIIs are active participants in the stock market, buying and selling shares based on their investment strategies and market outlook. Their trading activities can influence stock prices and contribute to the overall market sentiment. Liquidity and Volume: FIIs often bring liquidity to the market due to the large capital they invest. Their participation can increase trading volumes, enhance market efficiency, and improve price discovery. Market Sentiment and Confidence: FIIs' investment decisions and actions can influence market sentiment and investor confidence. Positive or negative outlooks from FIIs may lead to increased or decreased investor participation, impacting market trends. Foreign Capital Flows: The entry or exit of FIIs' capital in the Indian stock market can affect the overall foreign capital inflows into the country. Changes in foreign investment trends can impact currency exchange rates and the balance of payments. Sensex Movement: The Sensex, a widely followed stock market index in India, represents the overall performance of the Indian stock market. FIIs' buying or selling activities, along with other domestic and international factors, can contribute to the movement of the Sensex.


What is nifty bse and sensex?

Nifty - This is the name of the index of the National Stock Exchange (NSE) Sensex - This is the name of the index of the Bombay Stock Exchange (BSE)


Why sensex is used?

SensexWhat Does Sensex Mean?An abbreviation of the Bombay Exchange Sensitive Index (Sensex) - the benchmark index of the Bombay Stock Exchange (BSE). It is composed of 30 of the largest and most actively traded stocks on the BSE. Initially compiled in 1986, the Sensex is the oldest stock index in India.


How the sensex point will increase and decrease?

The Sensex likes to climb uphill like those nursery rhyme characters, Jack and Jill. And then, just like them, it comes tumbling down (causing many heartbroken Jack and Jills to lose their wallets in the bargain).Have you ever wondered what makes the Sensex move and who decides how it should move?Undoubtedly, you have heard your share of eerie stories. Like the one about the mysterious unseen hand that moves the market. Or how the market has a mind of its own.In reality, though, 30 stocks decide what the Sensex does.In Sensex? What's that?, we explained what the Sensex is made of. Now, let's see what makes it move.As you know, the Sensex comprises of 30 stocks. When the prices of these stocks increase, the Sensex goes up. When the prices decrease, the Sensex falls.It sounds simple but it still does not answer the 'how' question.Well, there is the market cap methodEach of the 30 stocks in the Sensex has a weight attached to it. This weight depends on the market capitalisation of the stock.Market capitalisation refers to the number of shares of a company multiplied by its market value (the price of each share). For instance, if a company has 10 million shares whose value is Rs 30 per share on November 1, 2004, it will have a market cap of Rs 300 million on November 1, 2004.If the market cap of the 30 Sensex stocks is Rs 3,00,000 crore and the market cap of ITC (which is one of the 30 shares that make up the Sensex) is Rs 20,000 crore, then ITC's weight in the Sensex is 6.66 percent.The rise or fall in the price of ITC's shares will impact the Sensex to that extent.This is referred to as the full market capitalisation methodology.Now, let's check free-float weightageThe Sensex shifted to the free-float weightage method on September 1, 2003.Here, a company's entire lot of shares are not taken into account (which means we are not looking at the entire market capitalisation). Only the shares readily available for trading are considered.In every company, a certain amount of shares are not available for trading on the stock exchange. These shares could be held by the government or the promoters of the company. Under the free-float weightage method, they are not taken into account.How does the stock exchange arrive at this weightage?In this case, the market cap is multiplied by the free float factor (which is the proportion of a company's shares that can be readily bought and sold).The Sensex's free float market cap at close of business on December 3 was Rs 3,66,124 crore.Unlike the Sensex, the 50 stocks in Nifty -- the index of the National Stock Exchange -- is based on the market cap method and not the free-float method.Sounds scary, does it not? Just 30 stocks can send the Sensex soaring or plummeting. What makes the difference is the fact that these are the most actively traded stocks in the market.In fact, they account for half the BSE's market capitalisation. They also represent 13 sectors of the economy and are leaders in their respective industries. Which means they are fairly representative of the stock market.


What happens when the sensex rises?

If the Sensex goes up, it means that the prices of the stocks of most of the companies under the BSE (Bombay Stock Exchange) Sensex (30 companies) have gone up. If the Sensex goes down, this tells you that the stock price of most of the major stocks on the BSE have gone down. Simlpe! :)


The lows of lows of Sensex in India during the Black October suggest that markets have already factored in all the worst news. Is an upswing in the offing or it is a bear rally?

In Stock Market India, everyday is black day....and about worst stock market news, we have to wait and watch as stock market is still not stable....we have keep an evil eye on market updates....