Do you know What is Sensex? and how is it made? Often you have read or seen the word Sensex on TV or in the newspaper. And sometimes you may have noticed that Sensex went up so many points today.
So you must have seen that Sensex has dropped so many points today. Whenever you think about investing in Share Market . At that time, you must have come to Sensex about that time.
But you will not know the meaning of these words. Because you don’t know what Sensex is? So in today’s post, What is Sensex and how is it made? In this post today, we need to know what is Sensex and what does it do?
We have told you in our earlier post what is nifty? In today’s post, we are talking about Sensex. So Sensex is also nifty. But compared to nifty, only 30 companies are listed in Sensex.
Nifty is also called nifty 50. Because 50 companies are listed in it. Let’s see what is Sensex and how is it made?
Full Form of Sensex
|Full Form of Sensex||Sensitive Index|
What is Sensex?
The word Sensex is made up of sensitive and index words. This means that it is a sensory index.
Sensex is the BenchMark index of our Indian stock market. Which explains the rise and fall in the prices of Listed shares in BSE (Bombay Stock Exchange). Through this, we get the information of the display of the 30 largest companies listed in it.
Sensex is the oldest stock market index in India, which started in 1986.
Sensex which is a stock market index and its most important function is that it keeps looking at the prices of all the shares of companies listed in the stock market.
And then give us an average value after a day’s work. So that we can easily get the information about the rapid and slowdown in the prices of listed companies in the stock market.
Bombay Stock Exchange (BSE) which is the oldest stock exchange in India. A total of 30 major Indian companies are covered under this. These companies should be seen according to market capitalization.
So it is very large, it is now 37% of the total of Indian GDP. This company works to set the trend of the Indian market in a way. And to put it in simple words, the index created for assessing the prices of the shares of big companies of India, which keeps an eye on the increasing decreasing prices of shares of these companies. This is called sensex.
How is Sensex made?
Sensex becomes the stock exchange committee. In which top 30 companies are selected from 13 different sectors of BSE.
This top 30 is chosen on the basis of their share transactions, in which it is seen how much of these company’s share has been bought and sold in a year.
Thousands of companies are listed on BSE’s stock exchange. So this process of selecting Sensex continues in this way and many times the company is extracted from Sensex and added.
Sensex gives you a format of the advantages and disadvantages of BSE Stock exchange.
Sensex comes within India’s top thirty company. Which gives us an indication of the boom of the slowdown in the Indian market.
Top 30 Companies
1) Adani Ports and Special Economic Zone Ltd.
2) Asian Paints
3) Axis Bank Ltd.
4) Bajaj Auto Ltd.
5) Bharti Airtel Ltd.
7) Coal India Ltd.
8) Dr. Reddys Laboratories Ltd.
9) HDFC Bank Ltd
10) Hero MotoCorp Ltd.
11) Hindustan Unilever Ltd.
12) Housing Development Finance Corporation Ltd.
13) ICICI Bank Ltd.
15) Infosys Ltd.
16) Kotak Mahindra Bank Ltd.
17) Larsen & Toubro Ltd.
19) Mahindra & Mahindra Ltd.
20) Maruti Suzuki India Ltd.
21) NTPC Ltd.
22) Oil & Natural Gas Corporation Ltd.
23) Power Grid Corporation Of India Ltd.
24) Reliance Industries Ltd.
25) State Bank Of India
26) Sun Pharmaceutical Industries Ltd.
27) Tata Consultancy Services Ltd.
28) Tata Motors
29) Tata Motors – DVR Ordinary
30) Tata Steel Ltd.
31) Wipro Ltd.
Benefits of Sensex
The advantages of Sensex are explained below
1. It consists of 30 major companies of the country. So if Sensex is seen increasing, then Indian companies also grow
2. With this, people from abroad and countries invest in that company and with this the company grows itself.
3. Due to which the job and employment also increase and the production of the company also increases.
4. When foreign investment in Indian companies increases. So the cost of money is low because the rupee is stronger than foreign currency due to investment.
5. Sensex has only 30 companies, so it is very easy to measure compared to nifty.
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