what is sensex

The Sensex, also known as the S&P Bombay Stock Exchange Sensitive Index, is a free-float market-weighted stock market index of 30 well-established and financially sound companies listed on the Bombay Stock Exchange. The 30 constituent companies, which are some of the largest and most actively traded stocks, are representative of various industrial sectors of the Indian economy. The Sensex is calculated using the free-float market capitalization method, which takes into account only the shares that are available for trading in the market, and not the shares held by promoters or governments. The Sensex is one of the benchmark indices for measuring the overall performance of the Indian stock market. It is important to note that the Sensex is different from the Nifty, which is another benchmark index for measuring the overall performance of the Indian stock market. While the Sensex comprises 30 companies, the Nifty comprises 50 companies.