Do you know what is sensex (What is Sensex in Hindi)? You must have often read or seen the word Sensex on TV or in newspapers. Sometimes you see that Sensex has gone up so many points today and sometimes you see that Sensex has fallen so many points today.
Whenever you think of investing in the share market, then you must have come across Sensex in your mind. But you do not understand the meaning of these words because you do not know what is Sensex? So today’s post is focused on Sensex. Today, through this post of ours, we will know what is Sensex and what is the work done through it?
We have told you in our earlier post what is Nifty. Today we are talking about Sensex. So Sensex is also similar to Nifty in a way but only 30 companies are listed in Sensex as compared to Nifty. Where Nifty is also called Nifty 50 because 50 companies are listed in it. let’s go into detail What is sensex know about.
What is Sensex (Sensex in Hindi)
Sensex The term was introduced by Deepak Mohoni. This word is made up of the words sensitive and index. This means that it is a sensory index.
Sensex is the BenchMark index of our Indian Stock Market, which tells the rise and fall of the shares listed in BSE (Bombay Stock Exchange). Through this we get information about the performance of the 30 largest companies listed in it.
Talking about the Sensex, it is the oldest stock market index in India, which started took place in 1986।
Sensex Which is a stock market index and its most important job is to keep looking at the prices of all the shares of the listed companies in the stock market and then after a day’s work give us an average value so that we can see the companies listed in the stock market. You can easily get information about the rise and fall in the prices of the shares.
Bombay Stock Exchange (BSE), which is the oldest stock exchange in India, has a total of 30 major Indian companies. These companies are very big if seen according to the market capitalization, it is currently 37% of the total Indian GDP.
These companies work in a way to set the trend of the Indian market. And simply put, the index made to measure the prices of the shares of big companies of India, which keeps an eye on the increasing and decreasing prices of the shares of these companies, is called Sensex.
How is Sensex formed?
we just talked What is Sensex? Now we will know how Sensex is made and by whom it is made, we will understand the process of its formation.
As we are well aware that Sensex is a part of Bombay Stock Exchange and Sensex is made up of shares of only thirty companies listed on Bombay Stock Exchange whereas the total number of companies listed on Bombay Stock Exchange. The figure is more than 6000.
When the Sensex is calculated, only the shares of 30 companies which are dominant in the market are included in it. The reason behind including the share prices of these 30 companies is that the shares of these 30 companies are the most bought and sold.
Second, it is the 30 largest companies, their market cap is almost half of all the shares listed on the stock exchange, which is a great achievement. The third reason is that these 30 companies are selected from 13 different sectors, these 30 companies are considered to be the biggest in their sector.
These 30 companies are selected by the index committee of the stock exchange, this committee consists of people from many sections, which can mainly include government, banks and eminent economists.
How does the Sensex increase or decrease?
Sensex Its job is to provide us with stock information. It monitors the movements in the shares of 30 companies under it. If the value of the shares of the companies listed in the Sensex is increasing in the market, then the Sensex also rises and goes up.
On the other hand, if the value of shares of companies listed in the Sensex is falling in the market, then the Sensex also starts falling.
The most important reason for the price of shares going up and down is the performance of those companies. For example, if the company has launched a new and big project in the market, then there is a possibility that the price of the company’s shares will increase.
Similarly, if the company is going through some difficulty, then people want to leave it and the shares start selling in more quantity. Due to the high volume of the stock, the share price decreases and the Sensex starts coming down.
On what basis 30 companies are selected?
The things that the Index Committee takes into account while selecting 30 companies to be included in the Sensex are as follows:
1) The shares of that company should be listed on the stock exchange for at least 1 year or more.
2) It is mandatory to buy and sell the stock of that company on all the days that the stock market is open within the last one year.
3) According to the number and value of average trades per day, these companies must be among the largest 150 companies in the country.
These are the factors which are taken into consideration by the index committee for listing.
Which are the top 30 best performing companies?
30 companies included in the Sensex were included for the first time in 1986, all these companies are very strong financially and also very big in terms of market cap. The demand for the shares of these companies always remains in the stock market.
Such companies are called “blue chip” companies. A total of 31 companies are included in the Sensex of BSE i.e. Bombay Stock Exchange. The list of companies listed in BSE Sensex is as follows
1) Adani Ports and Special Economic Zone Ltd.
2) Asian Paints
3) Axis Bank Ltd.
4) Bajaj Auto Ltd.
5) Bharti Airtel Ltd.
7) Coal India Ltd.
8) Dr. Reddys Laboratories Ltd.
9) HDFC Bank Ltd
10) Hero MotoCorp Ltd.
11) Hindustan Unilever Ltd.
12) Housing Development Finance Corporation Ltd.
13) ICICI Bank Ltd.
15) Infosys Ltd.
16) Kotak Mahindra Bank Ltd.
17) Larsen & Toubro Ltd.
19) Mahindra & Mahindra Ltd.
20) Maruti Suzuki India Ltd.
21) NTPC Ltd.
22) Oil & Natural Gas Corporation Ltd.
23) Power Grid Corporation Of India Ltd.
24) Reliance Industries Ltd.
25) State Bank Of India
26) Sun Pharmaceutical Industries Ltd.
27) Tata Consultancy Services Ltd.
28) Tata Motors
29) Tata Motors – DVR Ordinary
30) Tata Steel Ltd.
31) Wipro Ltd.
At this time in the Indian market, in a way, the rule of these companies runs. All these companies are major companies in their respective sectors and each company represents its sector in a way in the Sensex.
Advantages of Sensex
Well, the biggest advantage of the Sensex is that through this, the investor can know and understand the future changes in the market and accordingly invest his money in the right way.
But we also have some such benefits from the Sensex that they do not have much effect or benefit directly but are very useful indirectly. The movement of rupee keeps on changing according to the market and when the rupee is strong then things get 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 a lot of money is collected from the investors, the companies grow and expand. And whenever a company expands, it needs new people for that, so they will give jobs to more people and this will directly mean lack of unemployment.
2) When the stock market is good and the Sensex goes up, then many outside investors start coming in the country and when they invest money in Indian companies, it will increase the rupee. And the rupee strengthens against foreign currency. And when the rupee strengthens, it makes things cheaper. For example, foreign imported salmon will be available at lower prices than before due to the rapid depreciation of the rupee.
The Indian stock market is moving towards constant heights, at a time when it was started in 1990, then the Sensex used to be only one thousand, but in today’s time this figure has reached five digit number, in today’s time it has crossed 30,000. And is creating new records every day.
We expect it to scale new heights in future also and help investors earn profits.
What is the oldest stock market index in the country?
BSE is the oldest stock market index in the country.
When was BSE established?
BSE was established in 1957.
When was NSE established?
NSE was established in 1993.
What is the index of NSE?
The index of ‘National Stock Exchange’ (NSE) is NIFTY.
What is the index of BSE?
The index of ‘Bombay Stock Exchange’ (BSE) is SENSEX.
what did you learn today
If you are ignorant of the behavior of the market, then the stock market can be a risky investment for you. Invest in the stock market very carefully and do complete information before investing. Hope you liked the information related to Sensex.
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