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What Is Sensex and How It Is Calculated

In Indiau2019s financial world, the word Sensex is more than just a numberu2014itu2019s the pulse of the stock market. Every rise or fall in this benchmark reflects investor confidence, economic trends, and corporate performance. Whether you are a beginner in stock investing or an experienced trader, understanding what the Sensex is and how it is calculated can give you crucial insights into market dynamics.

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What Is Sensex and How It Is Calculated

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  1. WHAT IS SENSEX and How It Is Calculated?

  2. INTRODUCTION In India’s financial world, the word Sensex is more than just a number—it’s the pulse of the stock market. Every rise or fall in this benchmark reflects investor confidence, economic trends, and corporate performance. Whether you are a beginner in stock investing or an experienced trader, understanding what the Sensex is and how it is calculated can give you crucial insights into market dynamics. At Lares Algotech, widely recognized as the best stock broker company in India, we believe that informed investing begins with knowledge. Let’s decode the Sensex in detail—its meaning, history, components, calculation method, and importance for investors.

  3. WHAT IS SENSEX? The Sensex, short for “Sensitive Index,” is the benchmark index of the Bombay Stock Exchange (BSE)—India’s oldest and most respected stock exchange. It tracks the performance of 30 of the largest and most actively traded companies listed on the BSE. These companies are leaders in their respective sectors—such as banking, IT, energy, FMCG, and manufacturing—and represent the overall health of India’s economy. When the Sensex rises, it generally indicates optimism and growth; when it falls, it signals caution or bearish sentiment in the market.

  4. THE ORIGIN AND EVOLUTION OF SENSEX OVER THE YEARS, THE INDEX COMPOSITION HAS EVOLVED TO REFLECT INDIA’S CHANGING ECONOMY—FROM INDUSTRIAL TO TECHNOLOGY-DRIVEN GROWTH. TODAY, IT INCLUDES BLUE-CHIP FIRMS SUCH AS RELIANCE INDUSTRIES, TCS, HDFC BANK, INFOSYS, ICICI BANK, AND BHARTI AIRTEL. KEY MILESTONES IN SENSEX HISTORY • 1991: LIBERALIZATION REFORMS LED TO RAPID GROWTH IN THE INDIAN MARKET. • 2000: IT BOOM PUSHED SENSEX TO RECORD HIGHS. • 2008: GLOBAL FINANCIAL CRISIS CAUSED A MAJOR CRASH. • 2020: PANDEMIC TRIGGERED VOLATILITY BUT RECOVERY WAS SWIFT. • 2025: SENSEX STANDS AS A SYMBOL OF INDIA’S ECONOMIC RESILIENCE, CROSSING 70,000 POINTS AND BEYOND.

  5. WHO MAINTAINS THE SENSEX? The Sensex, short for “Sensitive Index,” is the benchmark index of the Bombay Stock Exchange (BSE)—India’s oldest and most respected stock exchange. It tracks the performance of 30 of the largest and most actively traded companies listed on the BSE. • THIS COMMITTEE COMPRISES • BSE OFFICIALS • MARKET EXPERTS AND ANALYSTS • ECONOMISTS • FUND MANAGERS

  6. 0120-6335981 laresalgotech.com THANK YOU

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