Today we will know complete information about what is Sensex and how does it work. All of you must have heard the name of the share market. News about the stock market keeps coming on TV and Newspapers. The stock market Nifty has recorded a decline of ten points. And the Sensex has seen a jump of ten points.
All this is seen and heard on the daily news channel. But have you ever thought about what is Sensex? How to earn double money by investing money in Sensex. If you want to know the complete information about it, then you must read the post from beginning to end.
The stock market consists of two stock exchanges, the National Stock Exchange and the Bombay Stock Exchange. We had known in the previous post that whatever company is under the national stock exchange.
Out of the Top 50 companies are kept in Nifty. And complete information about Nifty company has been received in the previous post. Just like any company that comes under the Bombay Stock Exchange. In this, the top 30 companies are kept in the Sensex.
Many of you want to invest in the share market. And some people invest in Nifty in the stock market. But they do not know about Sensex, so they are not able to buy its shares. But today’s entire post is focused only on the Sensex.
If you want to invest in the share market then you should know about Sensex. If you do not know what is Sensex, then you can know through this post. In this post, how does Sensex work, and which company is the index in it?
What is Sensex?
Sensex is the oldest stock exchange market index of India, it was started in the year 1986. Sensex is made up of two words, sensitive and index. Combining these two words, this word is formed. And this word was introduced by Deepak Mohani in 1986.
It is a kind of index and Sensex is also known as Stock Exchange Sensitive Index. It tells the share prices of BSE (Bombay Stock Exchange) under the share market. If the Sensex goes down, then the Bombay Stock Exchange also goes down and there is a recession in the country. If the Sensex goes up, then the share price rises, and the economy of the country improves.
The top 30 companies of BSE are placed in the Sensex, it gives us an idea about the condition of the market. The full form of BSE is the Bombay Stock Exchange. Its job is that sees the share price of the company. After that gives an average value of the shares bought and sold for the day. After that, the ups and downs of the shares of the companies listed in the stock market are known.
The oldest stock exchange of India is the Bombay Stock Exchange. The top 30 companies of the Bombay Stock Exchange come in the Sensex and it keeps on changing over time. The shares of the top 30 companies of the BSE are worth 37% of the total GDP of India. The full form of GDP is Gross Domestic Product. The shares of these companies are the most bought and sold in the market.
The full form of Sensex is Stock Exchange Sensitive Index. Apart from India, shares of this company are also bought and sold in foreign countries. It is calculated on the basis of the market capitalization-weighting methodology.
Full-Form of Sensex
The full form of Nifty is – Stock Exchange Sensitive Index or Bombay Stock Exchange
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Benefits of Sensex
There are many benefits of Sensex, but today we will talk about some major benefits only. If you buy shares of a company listed in Sensex, then you should know about its benefits. and If you want to invest your money in Sensex then you should know about its benefits. If seen, there are many benefits of Sensex but today we will know about some major benefits.
- The growth of the company is due to the increase in the share price.
- If a Sensex company gains, then the shares of that company are sold more.
- If the Sensex stays up then the country’s economy will be good.
- When the stock market goes up, investors from abroad also invest in the share market.
- If the shareholders benefit, then the economy of the country improves.
- If Sensex goes down, then bearishness is detected in the market.
- We can find this out about the performance of the Bombay Stock Exchange(BSE).
- It lets you know about the ups and downs in the market.
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How is Sensex Formed?
In today’s article, we have known what is Sensex. But do you all know how Sensex is formed and how many companies are indexed in it? If you want to invest money in this then you should have complete knowledge about it.
The Sensex comes under the Bombay Stock Exchange, in which the top 30 companies of the Bombay Stock Exchange are indexed. There are 5000 companies registered on the Bombay Stock Exchange but the top 30 companies are kept in it.
Shares of these top 30 companies are bought and sold in the share market. If the share price of these companies is more or less, then it affects the economy of the country. All the companies present in it have different sectors, all the 30 companies present are divided into 13 sectors. And all the companies are known to be very big companies in their sector. The index committee of the stock exchange chooses which company to keep in the Sensex.
What Basis 30 Company is Selected
The question must be in the mind of all of you, keeping in mind what are the top 30 companies selected. What are the things you have to keep in mind during the election to join the Sensex? To index in the Sensex, the company should be in the top 150 companies of the country according to the number and value of the average daily trades of the company.
The shares of that company should be listed on the stock exchange for more than 1 year. And all the days that the stock market is open in a year, the shares of the company should be bought and sold in the market on all those days. Keeping all these things in mind, we index the company in Sensex.
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How Does the Sensex Up and Down?
There is a top 30 company of India inside the Sensex, its job is to give information about the share market. There are ups and downs in the 30 companies that come under this. If the share price of these companies increases in the market, then Sensex goes up and there is a jump in it. If the share price of these companies decreases in the market, then Sensex comes down and it sees a decline in it.
Whether the share price of any company is more or less, depends on the performance of the company. If another company gives a better offer than that, then the shares of that company start selling, which is a loss to that company.
Example: If a new mobile is launched in a company, then the users of that mobile company increase. Similarly, if the features of the mobile company are not good, then the mobile people of that company stop using it. The company suffers loss and the company starts declining.
How Does Sensex Work
This brings us to know about the company listed in Bombay Stock Company. Its work is how the listed company is working. Sensex keeps complete information about it and the job of looking after the company is in its hands.
If a company does not do well, then the profit of the company is less. And if the profit of the company is less then there is a recession in the country. Sensex shows the average value of all listed companies. Which comes to know about the rise and fall in the prices of all the shares occurring in the stock market.
List of Sensex 30 Companies 2022 [Top BSE]
List of Top BSE (Bombay Stock Exchange) 30 Companies, Best BSE Companies, Top BSE Companies
|No.||Security Code||Sensex 30 Companies||Industry Sector||Weightage (%)||52W High||52W Low||Market Cap|
|1.||532978||Bajaj Finserv Ltd||Holding Companies||2.81%||12,021.00||4,900.00||1,88,109|
|2.||500470||Tata Steel Ltd||Iron & Steel Products||-0.16%||1,247.50||300.80||1,35,066|
|3.||500312||Oil & Natural Gas Corporation Ltd||Exploration & Production||2.24%||123.50||64.20||1,54,297|
|4.||524715||Sun Pharmaceutical Industries Ltd||Pharmaceuticals||-0.19%||721.90||452.60||1,62,075|
|5.||500510||Larsen & Toubro Ltd||Construction & Engineering||1.81%||1,593.00||842.50||2,12,130|
|6.||500247||Kotak Mahindra Bank Ltd||Banks||-0.25%||2,049.50||1,228.80||3,59,754|
|7.||500034||Bajaj Finance Ltd||Finance||1.56%||5,922.10||2,199.30||3,56,220|
|8.||500209||Infosys Ltd||IT Consulting & Software||-0.31%||1,480.00||675.00||5,92,085|
|9.||500010||Housing Development Finance Corporation Ltd||Housing Finance||1.42%||2,895.00||1,623.00||4,66,333|
|10.||532281||HCL Technologies Ltd||IT Consulting & Software||-0.31%||1,074.00||545.10||2,55,044|
|11.||532755||Tech Mahindra Ltd||IT Consulting & Software||0.48%||1,081.00||528.40||98,210|
|12.||500820||Asian Paints Ltd||Paints||-0.37%||2,995.60||1,575.00||2,81,515|
|13.||532538||Ultratech Cement Ltd||Cement Products||0.41%||7,050.00||3,614.70||1,91,545|
|14.||532977||Bajaj Auto Ltd||2/3 Wheelers||-0.58%||4,361.50||2,580.70||1,23,686|
|15.||532187||IndusInd Bank Ltd||Banks||0.34%||1,119.70||405.00||77,805|
|16.||500325||Reliance Industries Ltd||Integrated Oil & Gas||-0.84%||2,369.40||1,495.50||14,93,910|
|17.||500520||Mahindra & Mahindra Ltd.||Cars & Utility Vehicles||0.29%||952.10||457.00||99,716|
|18.||500696||Hindustan Unilever Ltd||Personal Products||-0.86%||2,504.10||2,001.50||5,54,949|
|19.||532454||Bharti Airtel Ltd||Telecom Services||0.11%||623.00||394.15||2,92,231|
|20.||500114||Titan Company Ltd||Other Apparels & Accessories||-0.95%||1,702.80||908.50||1,50,125|
|21.||532500||Maruti Suzuki India Ltd||Cars & Utility Vehicles||0.09%||8,400.10||5,222.90||2,17,723|
|22.||532215||Axis Bank Ltd||Banks||-1.11%||800.00||360.40||2,30,006|
|23.||532540||Tata Consultancy Services Ltd||IT Consulting & Software||0.05%||3,359.40||2,001.60||11,62,039|
|24.||532174||ICICI Bank Ltd||Banks||-1.14%||679.30||323.20||4,50,086|
|25.||532555||NTPC Ltd||Electric Utilities||0.04%||116.80||78.10||1,08,409|
|26.||500180||HDFC Bank Ltd||Banks||-1.25%||1,650.60||928.00||8,38,853|
|27.||532898||Power Grid Corporation Of India Ltd||Electric Utilities||0.00%||239.80||154.70||1,18,312|
|28.||500112||State Bank Of India||Banks||-1.38%||442.00||169.20||3,92,371|
|29.||500875||ITC Ltd||Cigarettes -Tobacco Products||-0.14%||239.20||163.40||2,57,378|
|30.||500790||Nestle India Ltd||Packaged Foods||-1.97%||18,821.20||15,104.00||1,71,579|
How to Calculated Sensex
Sensex is calculated by market capitalization and free-float market capitalization. Top 30 companies listed on Bombay Stock Exchange (BSE). 1978-1979 was selected on the basis of calculation and at that time the base price of Sensex was only Rs 100.
BSE (Bombay Stock Exchange) was calculated puzzle bar in 1986. If the share price of these companies increases, then the economy of the country improves. And if the company suffers from these shares, then the economy of the country becomes weak.
Market capitalization shows the value of the entire company. To remove it, the existing share of the company can be exited by multiplying the available shares. For example, if a company has 100 shares and the price of all the shares is Rs 500. So by multiplying 100 by 500, the value of his company is 50000.
Market Capitalization = Total no. of issued shares × Current Share Price of One Share
Many people invest in the share market, some of them are also promoters. In the free-float market cap, the current share is multiplied by the number of shares that are bought and sold. If the current share price of a company is Rs 200 and that company has a total of 2000 shares.
If the promoter has 400 shares of that company, then the market cap of that company will be 400000. And its free-float market cap is 200 times 1600 then the company’s free float market cap will be 320000.
Free Float Market Capitalization=Total shares available for trading × Current Share Price
BSE vs NSE
Now we know what is the difference between BSE and NSE. What is Bombay Stock Exchange vs National Stock Exchange? Bombay Stock Exchange vs National Stock Exchange (BSE vs NSE) We know about them in the points below.
|BSE chairman Vikramjitsen and the CEO of BSE is Aashish Kumar Chauhan||NSE chairman Girish Chandra Chaturvedi and the CEO of NSE is Vikram Limaye.|
|The Bombay Stock Exchange has 5000 company index||The National Stock Exchange has 1600 company index|
|There is no problem in indexing the company in BSE.||There is a lot of difficulty in indexing the company in NSE.|
|Sensex comes under the Bombay Stock Exchange||Nifty comes under the National Stock Exchange|
|BSE was established in 1957||NSE was established in 1993.|
How is the share price decided?
Do you all know how the price of any share is decided? Suppose the value of a company is five crores and the price of one share of that company is five lakh rupees. If a person has bought fifty lakh shares of that company. So this means that that person is a 10% shareholder of that company.
If there is any profit or loss of that company, then there is loss and benefit of that person also. the company incurs a loss of two crores, then you also lose 10 percent of it. If the company makes a profit of two crores, then you get ten percent of it.
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In today’s article, we have known what is Sensex and how it works. What is the difference between the Bombay Stock Exchange vs National Stock Exchange? Apart from this, we have also got complete information about it. Tell all of you information about the Sensex by commenting on it.
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