What is the Sensex Index?

Sensex is the most popular stock index in india among all. It majorly deals with tracking the performance of the 30 largest and most liquid companies registered on the Bombay Stock Exchange (BSE) that are representative of different industrial sectors of the Indian economy. 

The BSE Sensex is also called the S&P Bombay Stock Exchange Sensitive Index or just SENSEX. It is also a free-float market-weighted stock market index. This Sensex index was first compiled in 1986 as a market capitalization-weighted index.

BSE Index functions as an effective tool for investors to monitor the Indian stock market movements. When we think of its history, the year to be remembered is the launch year of Sensex, which was in 1986 by the Bombay Stock Exchange.

What is Free Float Methodology? 

Free-float methodology relates to an index construction methodology that believes the free-float market capitalization of a company to compute the index and allocate weight to stock in the index. It considers only those shares given by the company that have been easily obtainable for trading in the market.   

It normally bans promoters holding, government holding, strategic holding, and other locked-in shares that won't arrive to the market for trading in ordinary methods. Additionally, the market cap of each company in a free-float index is lowered to the size of its existing shares in the market. 

Why does Sensex go up and down? 

Sensex is a technical analysis indicator of the market sentiment or the Indian economy. This indicator includes a mutual fund that is a group of 30 companies with different weightages.

The prices of these companies are consistently fluctuating, therefore constantly make the Sensex price movements. When most of the company's prices go up, then the index will move up and if it goes down, the index will move down. 

What is the criterion of selections and reviews for Sensex?

Completely the criterion of selections and reviews for sensex is performed based on two objectives. One is Transparency and the other is Simplicity. Along with this objective, the criteria are Quantitative plus market capitalization and more, Qualitative along with track record. 

How do I start trading in Sensex?

The major steps to start trading in Sensex are listed below: 

• Firstly, finding the right broker is required. 
• For accessing the exchanges, retail traders are required to list with brokerage firms or Depository participants (DPs). 
• It's very crucial to determine the right DP because retail investors will buy, store, and sell stocks via the interactive interface of the DP.
• Also, it is better to open an electronic 2-in-1 demat account and a trading account with a DP. Now, it is convenient to make trading and investing. Moreover, you can witness all your places with a single eye.
• The things or documents required to open a Demat account are Identity proof, e-KYC, Permanent Address proof, and other financial data like annual salary,
• Once you have done with creating the demat account, start trading and investing. 
• Also, it is important to ensure thoroughly to do your due diligence on the compaines you're likely to invest and trade. 
• One more strategy is to build a DP to decrease your risks and safeguard your capital. 

FAQs On BSE Sensex Today 

1. How many shares are there in BSE? 

There are nearly 8900 listed stocks are there in BSE but 3000 stocks are allowed for trading daily. 

2. How many stocks are reviewed in Sensex? 

In the Sensex index, 30 stocks are large and most actively traded on the BSE. 

3. How is profit calculated in Sensex?

For calculating the Sensex profit, firstly, use the Sensex calculation formula ie., Sensex = (total free-float market capitalization/ Base market capitalization) * Base index value, where the base year is 1978-79 and the base value is 100.  

4. How to invest in Sensex? 

There are two approaches to investing in Sensex. They are: 

• Get stocks of the 30 companies with the same percentage as the weights in SENSEX.
• Invest in Index Mutual Funds that double the weightings of the companies in Sensex. 

Final Thoughts

We feel the provided Sensex index today's live chart and last traded data based on daily, weekly, and monthly will be beneficial for traders to make trading decisions. If you want to look at other index trading data like sensex then click on the available link of Global Indices here.

For additional trading technical analysis guides on options, futures, intraday, etc. do check our site @paisaalgo.com regularly. Further Read On: LICHSGFIN Pivot Point Calculator