Sensex,Stock Exchange Sensitive Index
The Sensex (S&P Bombay Stock Exchange Sensitive Index) is an index that tracks the performance of large and liquid Indian stocks. It is one of the most widely tracked stock market indices in India and is often seen as a barometer of the overall health of the Indian economy.
Key features:
- Sensitivity: The Sensex is a sensitive index, meaning that it is influenced by even small changes in the prices of its constituent stocks.
- Large-cap: The Sensex primarily includes large-cap companies, which are typically more stable and less volatile than smaller companies.
- Liquidity: The stocks in the Sensex are generally highly liquid, meaning that they can be easily bought or sold in large quantities.
- Market bellwether: The Sensex is often seen as a bellwether for the Indian stock market. Its performance can be a good indicator of the overall direction of the market.
- Benchmark: The Sensex is used as a benchmark index for a number of other Indian stock indices.
Constituent companies:
The Sensex currently includes a total of 30 companies. Some of the largest companies in the Sensex include:
- Reliance Industries Ltd.
- Tata Consultancy Services Ltd.
- Mahindra & Mahindra Ltd.
- Bajaj Auto Ltd.
- Hindustan Unilever Ltd.
Performance:
The Sensex has historically performed well, with a return of around 10% per year on average over the past 10 years. However, there have been significant fluctuations in the Sensex’s performance over time. For example, the Sensex dropped by 20% in 2008 and rose by 25% in 2010.
Overall:
The Sensex is a key index in the Indian stock market. It is a sensitive index that tracks the performance of large and liquid Indian stocks. It is also used as a benchmark index for a number of other Indian stock indices.
