The S&P BSE SENSEX (Sensitive Index) is a free-float market capitalization-weighted stock market index of 30 well-established and financially sound companies listed on the Bombay Stock Exchange (BSE). It is the benchmark index of the Indian equity market.
Description: The SENSEX, short for 'Sensitive Index,' is the oldest and most widely tracked stock market index in India. Launched in 1986 by the Bombay Stock Exchange (BSE), it originally comprised 30 stocks representing major sectors of the Indian economy. The index is calculated using a free-float market capitalization methodology, which adjusts the market cap of each constituent by its publicly available shares. The base year is 1978-79 with a base value of 100. Over the decades, the SENSEX has become a barometer of the Indian economy and is used by investors globally to gauge market sentiment. It is rebalanced semi-annually to ensure it reflects the most liquid and representative large-cap stocks. The index is maintained by S&P Dow Jones Indices in collaboration with the BSE. Key milestones include crossing the 1,000 mark in 1990, 10,000 in 2006, and 50,000 in 2021. The SENSEX is widely used for benchmarking, index funds, ETFs, and derivatives trading.