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Definition of 'Sensex'

The Sensex is a stock market index that measures the performance of 30 of the largest companies listed on the Bombay Stock Exchange (BSE). It is considered to be a benchmark for the Indian stock market and is often used as a barometer of the overall health of the Indian economy.

The Sensex was created in 1986 and is calculated using a free-float market capitalization weighted methodology. This means that the index is weighted according to the market capitalization of each company in the index, with larger companies having a greater influence on the index than smaller companies.

The Sensex is a widely followed index and is often used by investors to make investment decisions. It is also used by the media to report on the performance of the Indian stock market.

The Sensex has seen significant growth over the years. In 1986, the index was at a level of 1,000 points. By 2008, it had reached a peak of 21,206 points. However, the index suffered a sharp decline during the global financial crisis and fell to a low of 8,161 points in 2009.

Since then, the Sensex has recovered and has been trading at around the 30,000-point level.

The Sensex is a valuable tool for investors and market participants. It provides a real-time snapshot of the performance of the Indian stock market and can be used to make informed investment decisions.

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