What is SENSEX ?
Sensex is a short form of (BSE) Bombay Stock Exchange Sensitive Index. The base value of the Sensex is 100 on April 1, 1979 and the base year of BSE-SENSEX is 1978-79. The oldest index in India SENSEX is made of 30 stocks only. Although the no.30 is small , but these 30 stocks are the the most actively traded stocks in the market and account for half the BSE's market capitalisation. Not only that , these 30 stocks represent 13 sectors of the economy and are leaders in their respective industries.Who selects 30 stocks for SENSEX ?
The index committee selects the list of 30 stocks which should be be included in SENSEX. Index Committee consists of academicians, mutual fund managers, finance journalists, independent governing board members and other participants in the financial markets.
Criteria to selects 30 stocks for SENSEX ?
~ To be selected The stock should have been traded on each and every trading day for the past one year.
~ The stock should be among the top 150 companies listed by average number of trades and the average value of the trades per day over the past one year.
~ The stock must have been listed on the BSE (Bombay stock exchange ) for at least one year.
Hi. I have tried my best to explain you what is Sensex and what is BSE, I hope this basic guide helps u to get basic information about how sensex works.
