Sensex, which stands for ‘Stock Exchange Sensitive Index’, is the stock market index for the Bombay Stock Exchange. It calculates the movement on BSE.
The BSE SENSEX (also known as the S&P Bombay Stock Exchange Sensitive Index or simply SENSEX) 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 has some reviews and modifies its composition to be sure it reflects current market conditions.
The index is calculated based on a free float capitalisation method, a variation of the market capitalisation method.
The term Sensex was coined by Deepak Mohoni, a stock market analyst in 1989 and it was published on 1 January 1986, the S&P BSE SENSEX is regarded as the pulse of the domestic stock markets in India.
Similarly, Nifty stands for ‘National Stock Exchange Fifty’ and is the index for the National Stock Exchange.