Full Form of SENSEX

What is SENSEX?

The SENSEX, short for the Bombay Stock Exchange Sensitive Index, is India’s oldest and most widely recognized stock market benchmark. Introduced on 1 January 1986, it tracks the performance of 30 well-established and financially sound companies listed on the Bombay Stock Exchange (BSE). These companies are selected based on free-float market capitalization, liquidity, and sector representation, ensuring the index reflects the broader economy. The base year of the SENSEX is 1978-79 with a base value of 100. The index is calculated using the free-float market capitalization weighted methodology. Widely followed by investors, traders, media, and policymakers, the SENSEX acts as a pulse of the Indian capital markets. A rise in the index generally indicates bullish market sentiment and positive economic expectations, while a fall signals bearish trends. In India, the SENSEX is used to benchmark portfolio performance, evaluate mutual funds, and gauge the impact of economic policies and global events. For students preparing for competitive exams like UPSC, SSC, banking, and regulatory body exams, understanding the SENSEX and its role in the Indian financial system is essential, as questions on stock market indices are common. The index has witnessed several milestones, crossing the 50,000 and even 80,000 mark in recent years, highlighting India’s economic growth story.

SENSEX का फुल फॉर्म

Example

The SENSEX surged by 500 points today, reflecting positive investor sentiment after the budget announcement.

SENSEX — frequently asked questions

Related full forms