If you are interested in the stock market or you must have heard the news related to the stock market on the news channel at home, then you must have heard about Sensex. You will often hear in news channels that today the Sensex has jumped so much, today the Sensex has fallen so much, then somewhere you must have thought that after all this Sensex Kya Hai.
In answer to this question, we have written today’s article, in this article we have tried to give you complete information about Sensex. If you want to earn money by investing in the stock market, then it is also necessary for you to know about the Sensex.
So let’s start without taking much of your time, let’s know this article in more detail, what is Sensex?
According to Wikipedia, the Sensex is the benchmark index or sensitive index of the Bombay Stock Exchange (BSE), the oldest stock exchange in India. BSE started the Sensex in 1986. Sensex is made up of two words Sensitive and Index. The best 30 companies registered in BSE are included in Sensex.
Sensex is also known as BSE 30, BSE Sensex, or Sensex 30, the overall performance of BSE is seen by the fluctuations in Sensex. Sensex is calculated by Free Float Market Capitalization Methodology.
If the share price of 30 companies listed in Sensex is increasing in the market, then it means that Sensex is increasing. When Sensex rises, BSE investors also profit.
And when the share price of the top 30 companies listed in Sensex is decreasing in the market, it means that Sensex is decreasing. If the Sensex falls, then the investors of BSE suffer a loss. The Sensex rises and falls when the share price rises and falls in the top 30 companies listed in the Sensex.
There are more than 5700 companies listed on the BSE, out of which the Sensex is made up according to the share prices of the top 30 companies in the market. When companies are listed in Sensex, then those companies are included in it whose shares are sold and bought daily in the market.
The 30 companies that are selected in Sensex are selected from 13 different sectors, and all these companies are the largest in their sector. Sensex is issued on the basis of Free Float Market Capitalization of any company.
Market capitalization is calculated by multiplying the total share of the company by the price of one share, and the total market capitalization to calculate the free-float market capitalization is the number of shares held by the company’s owner, promoter, and government. Market capitalization is reduced.
In this way, the thirty companies which have the highest market capitalization are included in the Sensex. Sensex is selected by the index committee of the stock exchange. People from many departments are involved in this like government, banks, economists, etc.
First of all, the market capitalization of 30 companies listed in the Sensex is extracted. To calculate the market capitalization, the total number of shares issued by the company is multiplied by the price of one share.
For example, if a company has issued 100 shares and the price of each share is Rs 10, then the market capitalization of the company is Rs 1000.
Now the Free Float Factor of the company is calculated. In this, those shares issued by the company are removed which are with the government and the promoter of the company. In this, only those shares are included which are available for trading in the market.
Let the government and promoter hold 30 percent of the 100 shares of a company XYZ and 70 percent of the shares are available for trading, thus the free float factor of the company is 70 percent.
Now the free float factor of all the companies is multiplied by the market capitalization of the company, which calculates the free float market capitalization of the company.
In this way, the Free Float Market Capitalization of all 30 companies is added and divided by a Base Value and multiplied by the Base Index. This is how the Sensex is calculated.
We can write this whole calculation in the form of a formula as follows –
For the first time in the Sensex in 1986, 30 companies were listed, all of these companies were the largest and most powerful on the basis of market capitalization. The demand for the shares of these companies always remains in the market. Let’s also take a look at 30 companies listed in Sensex.
Sensex is the benchmark index of the Bombay Stock Exchange which is called the Sensitive Index. Sensex is also known as BSE Sensex or BSE 30.
Sensex was established in 1986.
30 companies are listed in the Sensex.
Sensex is calculated on the basis of Free Float Market Capitalization.
With the decrease and increase in the share price of 30 companies listed in the Sensex, the Sensex also fluctuates.
Through this article, we have given you complete information about Sensex Kya Hai, how Sensex is formed, how Sensex is calculated, and the 30 companies listed in Sensex. It has always been our endeavor to provide you with all the information in the simplest possible terms so that there are no questions left in your mind.
Even after reading this article, if you have questions related to Sensex in your mind, then you can ask us in the comment box, and if you liked this article, then share this article of ours on social media and reach the right information to the people.
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