What do you mean by Sensex in Stock market?

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Feb 20, 2023

The S&P BSE Sensex, commonly referred to as the Sensex, is a stock market index in India that measures the performance of the 30 largest and most liquid stocks traded on the Bombay Stock Exchange (BSE). The Sensex is widely considered to be a barometer of the Indian stock market and the Indian economy.

The Sensex is calculated based on the market capitalization of its component stocks, meaning that the stocks with the highest market capitalization have the greatest weight in the index. The Sensex is updated in real-time during market hours, and its level can fluctuate based on various factors, including economic data releases, changes in government policy, and global events.

Investors often use the Sensex as a benchmark for the performance of their portfolios, and financial professionals may use the index to analyse market trends and make investment decisions. It’s important to note that the performance of the Sensex does not represent the performance of the entire Indian stock market or the Indian economy, and it’s important to diversify your investments and consider other factors when making investment decisions.