Question

what is sensex? give me the best idea with examples?

Answer 1

Sensex also called BSE 30, is the market index consisting of 30 well-established and financially sound companies listed on Bombay Stock Exchange (BSE).

30 companies are selected on the basis of the free float market capitalization.These are different companies from the different sectors representing a sample of large, liquid and representative companies.The base year of Sensex is 1978-79 and the base value is 100.It is an indicator of market movement.If Sensex goes up, it means that most of the stocks in India went up during the given period. If the Sensex goes down, this tells you that the stock price of most of the major stocks on the BSE has gone down.

For example, suppose the Sensex is 26,000 today. If Sensex drops to 25,950 tomorrow, it means that the majority of the 30 companies financial condition is not good i.e. their share price is falling.