Last Updated on July 2, 2022 by admin

Sensex Full Form – What is Sensex?

BSE Sensex full form is basically, Bombay Stock Exchange Sensitive Index. Bombay Stock Market Index Simply BSE Sensex is listed with well established and well settle 30 companies. BSE Sensex building is located in Mumbai. You know we already discuss about, What is Mutual Fund and How to Invest in Mutual Fund.

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What is Sensex or Sensex Meaning ?

Sensex is an indicator of the Mumbai stock market S&P BSE. The full form of BSE is the Bombay Stock Exchange. While Sensex Full form is simply, Sensitive Index. Sensitive Index means Sensory Index. Sensex is the oldest Stock index in India.

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Little explanation about what is Sensex?

You often read or see the word SENSEX on TV or in newspapers. Sometimes you may see that Sensex has gone up by a lot of points today, and sometimes you see that Sensex has gone down by a lot of points today.

Whenever you are thinking about investing in the Stock Market, you should come to know Sensex & how it works? But you do not understand the Sensex meaning or these words because you do not know what is Sensex. So todays article we focused on short details of SENSEX. Sensex full form, Sensex meaning. Today in this post, we will know what is Sensex and how it works ?

Sensex Meaning :

The name Sensex was coined by Deepak Mohoni. This word is made up of sensitive and index words. This means it is an indication of the senses.

SENSEX is a Benchmark indicator of our Indian stock market, which shows the rise and fall of stock prices listed on the BSE (Bombay Stock Exchange). With the help this, we get details about the performance of the 30 major companies listed in it.

Talking about of SENSEX, it is an indication of the oldest stock market in India, which started in 1986.

Sensex which is a stock market index and its most important function is to look at the prices of all stocks listed in the stock market. And then after a day’s work give us a fixed amount to calculate the stock market can easily find information about boom and stocks in companies.

BSE Sensex, The Bombay Stock Exchange (BSE), India’s oldest stock exchange, comprises 30 major Indian companies. These companies are the largest investor in the market, now accounting for 37% of India’s total GDP. These companies somehow set the trend for the Indian market. Simply put, an index designed to monitor the stock prices of major Indian companies, keeping an eye on the rising stocks of these companies, is called SENSEX. ( Sensex full form – Stock exchange Sensitive Index)

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How is Sensex made?

Now we have talked about what is SENSEX & Sensex full form? So Now that we know how Sensex is made and what kind of people make it, And now we will understand the process of making it. As we all know, Sensex is part of the Bombay Stock Exchange and Sensex is made up of the shares of only 30 companies listed on the Bombay Stock Exchange and the number of companies listed on the Bombay Stock Exchange. The number is over 6000.

But When SENSEX counts, only 30 prominent companies in the market are included in their shares. The reason for the stock prices of these 30 companies is that the shares of these 30 companies are being bought and sold heavily.

Second, they are the 30 largest companies, their market cap almost half of all stocks listed on the stock exchange. And which is a huge success. So The third reason is that these 30 companies were selected in 13 different categories, of which the 30 companies are considered to be the largest in their field.

These 30 companies are nominated by the stock exchange indexing committee. The committee is made up of people from many walks of life, including the government, banks, and economists.

How does Sensex go down or up?

SENSEX’s job is to provide us with information to share. And It looks at the volatility in the stocks of 30 companies under its watchdog. If the stock market share of companies listed in Sensex increases, then Sensex also goes up and up. But At the same time, if stock market prices for companies listed in Sensex decline, then Sensex also begins to fall. So Friends I hope now you understand.

On what basis are 30 companies selected?

The factors that the reference committee takes care of during the election of 30 companies to be included in SENSEX are the following:

1) The shares of that company must be listed on the Stock Exchange for at least 1 year or more.

2) It is compulsory to buy and sell the stock of that company on every day of the stock market in the last one year. And,

3) Depending on the amount and value of the average daily trading, these companies must be among the top 150 largest companies in the country.

These are the considerations of the indexing committee.

The top 30 best performing companies come from cones : Stock market Investment.

Thirty companies included in SENSEX were first listed in 1986. And All of these companies are financially strong and are also very large in the stock market. The need for shares in these companies is always present in the stock market. Such companies are called “blue chip” companies. The Bombay Stock Exchange Sensex currently has a total of 30 well established companies.

Sensex Full Form ( Sensitive Index )

Currently these Sensex companies dominate the Indian market in some way. And All of these companies are large companies in their respective fields and each company is represented.

Sensex 30 Companies and It’s BSE Scrip Code : (Sensex full form)

Sensex Companies : Company Name (BSE Scrip Code )

Adani Ports and Special Economic Zone Ltd. ( 532921)
State Bank of India. ( 500112)
Axis bank. ( 532215)
Bajaj Auto Ltd. (532977)
Asian Paint. ( 500820)
Bharti Airtel Ltd. ( 532454)
Coal India Ltd. ( 533278)
Dr. Reddys Laboratories Ltd. ( 532454)
HDFC Bank Ltd. ( 500180)
Cipla. ( 500087)
ITC. ( 500875)
Hero MotoCorp Ltd. ( 500182)
Hindustan Unilever Ltd. ( 500696)
Oil & Natural Gas Corporation Ltd. ( 533106)
Housing Development Finance Corporation Ltd. ( 535789)
ICICI Bank Ltd. ( 532174)
NTPC Ltd. ( 532555)
Infosys Ltd. ( 5002090
Kotak Mahindra Bank Ltd. ( 500247)
Larsen & Toubro Ltd. ( 500510)
Lupin. ( 500257)
Mahindra & Mahindra Ltd. ( 532755)
Maruti Suzuki India Ltd. ( 532500)
Tata Motors. ( 500570)
Tata Steel Ltd. ( 500470)
Wipro Ltd. ( 507685) :
Power Grid Corporation Of India Ltd. ( 532898)
Reliance Industries Ltd. ( 500325)
Sun Pharmaceutical Industries Ltd. ( 524715)
Tata Consultancy Services Ltd. ( 532540)

At the moment todays time these companies ruling in the Indian market in a way. All these companies are major companies in their respective sectors and each company represents its sector in the Sensex in a way.

Benefits of Sensex – ( Sensex Full Form)

As such, the biggest benefit of SENSEX is that through this, investors can know and understand the future changes in the market and can invest their money properly according to them. And from there they earn money, but you need to learn everything before investing money.

But we also have some other benefits from the SENSEX that they do not directly impact or benefit much, but are quite useful indirectly. The movement of the rupee varies according to the market and when the rupee is strong, things are cheaper in the country. Let us know about some different benefits.

1) When companies see the Sensex going up, then investors also want to invest in such companies and when there is a lot of money collected from the investors, the companies grow and expand. And whenever a company expands, it needs new people for it, then in that case they will give jobs to more people and this will directly mean lack of unemployment.

Sensex Full Form

2) When the stock market is good and the Sensex goes up, then many foreign investors start coming in the country and when they invest money in Indian companies. So it will increase the rupee. And the rupee is strong against foreign currency. And Because of this when the rupee is strong, then things start becoming cheaper. For example, the products which are coming from foreign country will be available at a lower price in India.

The Indian stock market is on the rise of successive heights. At one time when it started in 1990. The Sensex used to be just a thousand but in today’s time this figure has reached the five-digit number. Today it has crossed 49000. Its almost going up to 50000. And it is creating new records every day. We hope that in future also it will touch new heights and help investors in making profits. And people can earn more money from Sensex.

If you are unaware of the behavior of the market, then the stock market can be a risky investment for you. Invest in the stock market very thoughtfully and get complete information before investing.

Conclusion:

Friends Today we have learnt about Sensex full form and all the details of Sensex and Nifty. So if you have any doubt or want to know anything related this just comment below.

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Sensex Full Form & Sensex meaning.

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Some Important FAQ About Sensex and Nifty :

What is the full form of Sensex?

Stock Exchange Sensitive Index.

How is Sensex calculated?

Sensex Calculated formula = (Total free float market capitalization / Base market capitalization)* Base Index Value.
Free – Float Capitalization = Market Capitalization * Free Float Factor.
( Paragraph Credit : Karvionline.com)

What is the Use of Sensex?

Sensex, is one of the leading stock market benchmark indices in India. It tracks the movement of stock prices on the exchange and functions as an indicator of market sentiments.

What is Sensex And Nifty?

we already discussed about Sensex full form. And Nifty is ” Nation Stock Exchange Fifty”. And it is the index for the National Stock Exchange.
Hope you have liked the information related to SENSEX. What is Sensex? Sensex full for and Sensex meaning. I hope you understand Now.

Thank You.