What is Sensex?
Friends, there are many such technical terms in the stock market, which are used to measure the fluctuations in the stock market, or other things. One such word is 'Sensex'. If you know a little about the stock market, then you must know what is 'Sensex'. How it can be used to see the fluctuations in the stock market.
What happens to you if Sensex? Don't know about it?
So never mind,
1.what happens to Sensex in this post of ours today?
2.What does the Sensex signify in the stock market?
3.How can we monitor the stock fluctuations?
Providing detailed information about all these things.
πWhat is Sensex?
Sensex is also known as Sensex-30. In fact, the SENSEX is an index of 30 companies listed on the Bombay Stock Exchange. It is also known as an S&P BSE SENSEX index, that is, it is the benchmark index of the Mumbai Stock Exchange.
Talking about the SENSEX, it is the benchmark index of our stock market or stock exchange. Or India's oldest stock exchange. Which refers to the Bombay Stock Exchange ie the fluctuations or rapid or slowdown in the shares of BSE. It lists 30 of the largest companies in India, holding 60% of the listed company's stock in the BSE. Due to its ups and downs, we get to know that there is a boom or slowdown on our share market.
The term 'Sensex' was first used by Deepak Mohini. This word is made up of two words, which is the first 'sensitive' and the second 'index' is made by adding 2 words to the word 'Sensex'. The same when we talk about SENSEX, it is India's oldest stock market intakes, which was established in the year 1986.
As we mentioned above, Sensex is the index of the 30 largest companies in India. Which is listed on the settled. Which is the highest of the existing companies in the total BSE, which you can also call the top. The market holds capitalization. Accordingly, it holds more than 60% of the market cap of listed companies in the total BSE. He holds 37% of the total Indian GDP.
With this, you will have got a clear idea how with the help of SENSEX we can monitor the fluctuations in the stock market. It can be monitored on the trend of the stock and the boom and recession occurring on the Bombay Stock Exchange. Simply put, Sensex is an index that refers to the ups or downs in the index of the 30 largest companies listed on the BSE.
πWhen does any company join Sensex?
As we mentioned above, Sensex is the index of the 30 largest companies in India. Which shows the ups and downs on the BSE stock exchange.
There are 30 companies on the SENSEX index. But the question arises as to which companies are listed on Sensex, and what are their criteria?
To be listed on Sensex, any company must be one of the companies having 100 market cap of BSE, besides the market capitalization of that company, it is mandatory to have 0.5% of the total market cap of BSE (Mumbai Stock Exchange). Only then can it be listed on the SENSEX. Apart from this, some criteria have been fixed, which are as follows: -
πFor any company to be listed on Sun Sex, its shares should be listed on the stock exchange for more than 1 year.
πIn every stock exchange opened within 1 year, the sale of that company's stock must have been done every day.
πEvery day, according to the number and total value of the average trade, the company is among the 150 largest companies in India.
πWhat is market capitalization?
Market capitalization or market cap is the current price of total share issued by any company to the public.
This is what we have mentioned about it in our second post as well. But still we want to explain it by an example. Suppose ABC is a company that has issued 1000 shares for public. The face value of each share is ₹ 10. Currently, the price per share of ABC company is ₹ 20. To get the market cap of ABC company, we have to do the total share times the current share price. In the context of our S example,
Total shares of ABC company = 1000 shares. Present value of share of ABC company = ₹ 20. Market cap of ABC company = 1000 × 20 ₹. Total market cap of ABC company = 20,000 ₹
That is, ABC Company has a total market cap of ₹ 20000. In the same way, the market cap of the shares of the total companies listed in the BSE is equal to the market cap of the BSE. To be listed on Sensex, any company must have a market cap of 0.5% of the company's market cap of the value of the shares of companies listed in the BSE, only then the young company can be listed on Sensex.
πWhich companies are listed on Sensex?
As we have already mentioned about 30 companies are listed on Sensex in total. Following is the list of them: -
- Adaniports and special economic zone private limited
- Asian paints
- Bajajauto limited
- Axis Bank limited
- Bharti Airtel limited
- Reliance industry
- Cipla
- Coal India limited
- HDFC Bank limited
- Dr. Reddyes laboratories limited
- Hero MotoCorp limited
- Hindustan Unilever limited
- Housing development finance corporation limited
- Tata Steel
- Wipro limited
- Tata motors
- State Bank of India
- Sun pharmaceutical limited
- Power grid corporation of India limited
- Oil and natural gas limited
- NTPC limited
- Tata motors – DVR ordinary
- Mahindra and Mahindra limited company
- Maruti Suzuki India
- Infosys limited
- Kotak Mahindra Bank limited
- ICICI Bank limited
- Larsen and turbo limited
- ITC
- Lupin private limited
These are some of the major companies of India which have been listed on Sensex, we can detect the movement in the stock market by looking at the fluctuations or rapid or slowing of the shares of these companies. The fluctuations in the stock of these companies are the major companies in their respective fields, due to which the decline or rise in the stock market can be monitored.
πWhat are the benefits of Sensex index?
By the way, Sensex has many advantages. But here we are only going to talk about some major advantages. As we have informed you that Sensex is an index of 30 companies listed on Bombay Stock Exchange.
These 30 companies are the leading companies in their field. Due to the fluctuations in their stock, you can also find out about the rise or fall in that area. Apart from this, these 30 big companies hold 37% of GDP. From these figures it can be found that there is a slowdown or a boom on our economy.
So let's know what are the benefits of Sensex?
πThe biggest advantage of Sensex is for investors who conduct trading activities on the stock market.
πYou can find the movement in the stock market by looking at the fluctuations or rapid recession on Sensex.
πSensex has 30 Indian companies listed on it. Which is the leading company in its field.
π30 top The company also impacts our GDP. So that we can monitor the impact on our economy.
πWhich accounts for 37% percent of the total GDP.
πWith the help of whom you can monitor the economy and the market, you can also assess the impact on the economy by assessing the data.
Hi , This is Pramod Choudhary from Nagaur Rajasthan India. I an student and I would like to share my positive thinking with everyone that's my passion . Thank you
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