Sensex: India's Oldest and Most Prominent Equity Index
What is Sensex?
The Sensex, or the BSE Sensitive Index, is India's oldest and most prominent equity index. It is a free-float market-weighted stock market index that comprises 30 well-established and financially sound companies listed on the Bombay Stock Exchange (BSE).
Calculation Methodology
The Sensex is calculated using the free-float market capitalization of the constituent companies. The free-float market capitalization is the value of the shares that are available for trading in the public market.
The weight of each company in the index is determined by its free-float market capitalization. The higher the free-float market capitalization, the greater the weight of the company in the index.
Significance of Sensex
The Sensex is a barometer of the Indian economy. It reflects the performance of the largest and most active companies in the Indian market. The index is widely used by investors, analysts, and policymakers to gauge the health of the Indian economy.
Comments