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What is Sensex?

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johnnwicky
What is Sensex?

sensex meaning

The full form of Sensex is the Sensitive Index; it is the benchmark index of BSE (Bombay Stock Exchange). Sensex was established in the markets as S&P BSE Sensex in the year 1986 and is considered to be the oldest Index in India. Sensex tracks 30 very large and most actively traded companies out of more than 5700 listed companies listed on BSE. These 30 companies are from different industrial sectors that indicate the Indian Economic Trends and Stock Market as a whole.

Sensex is internationally traded on Eurex and various leading exchanges of Brazil, Russia, China, and South Africa.

Sensex Timings

Sensex follows the timings of Equity Segment that is from 9:15 am to 3:30 pm, Monday to Friday.

How to Invest In Sensex?

You can invest in the Sensex via Index Mutual Funds and Exchange Traded Funds (ETFs). These funds invest in a basket of stocks that mirror the returns of the index like Nifty or Sensex etc. The main difference between Mutual Funds and ETFs is, the prices of ETFs are updated actively during the day similar to stocks and can be bought and sold at live prices.

On the other hand, the prices of Mutual Funds are updated only at the end of the day and can be bought and sold based on the End of Day Price.

As you have already learned, Sensex consists of the largest companies from different industrial sectors that collectively represent the Economic Trends of India. Similarly, there are Sectoral Indices that track the collection of stocks of a particular sector and represent the overall performance of that sector.

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