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What is the Stock Exchange Sensitive Index?
The Stock Exchange Sensitive Index, commonly known as the Sensex, is India's benchmark stock market index. It represents the performance of the 30 largest and most financially sound companies listed on the Bombay Stock Exchange (BSE). These companies span key sectors like banking, IT, healthcare, and consumer goods, making the Sensex a reliable indicator of India’s economic health. Launched in 1986, the index uses a free-float market capitalization-weighted methodology, meaning larger companies have a greater impact on its movements. Investors and analysts closely monitor the Sensex to gauge market trends, economic stability, and investor sentiment. A rising Sensex typically signals bullish market conditions, while a decline suggests bearish trends. Due to its broad representation of India’s corporate sector, the Sensex is widely used by domestic and global investors for portfolio benchmarking, derivatives trading, and economic analysis. Alongside the Nifty 50 (NSE’s benchmark index), the Sensex plays a crucial role in shaping investment decisions and financial policies in India.
The Stock Exchange Sensitive Index (SENSEX) is India's premier benchmark stock market index, tracking the performance of 30 financially sound and actively traded companies listed on the Bombay Stock Exchange (BSE). Established in 1986, it reflects the overall health of the Indian equity market.

The SENSEX is market capitalization-weighted, meaning larger companies have a greater impact on its movement. It spans key sectors like banking, IT, energy, and consumer goods, providing a snapshot of economic trends. Investors and analysts use it to gauge market sentiment, make portfolio decisions, and assess economic growth.

As one of Asia's oldest indices, the SENSEX serves as a critical indicator for both domestic and global investors. Its fluctuations influence policy decisions and foreign investment flows into India.

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