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What is SENSEX index?

The term Sensex is a portmanteau of Sensitive and Index. The Sensex is an index that reflects the Bombay Stock Exchange (BSE). The Sensex Index comprises 30 stocks on BSE. These stocks are the largest and most actively traded stocks on the BSE. The criteria for selecting stocks is as follows: It should be a large to mega-cap stock.

What is BSE SENSEX?

The BSE SENSEX (also known as the S&P Bombay Stock Exchange Sensitive Index or simply SENSEX) is a free-float market-weighted stock market index of 30 well-established and financially sound companies listed on the Bombay Stock Exchange.

What makes a stock a SENSEX stock?

Shares should have high liquidity – For a stock to be considered for addition to SENSEX, it needs to be liquid. What it means is that it should be easy to buy and sell that particular stock. Since this liquidity is a part function of the quality of the underlying business, this also acts as a filtering criteria

Why did the SENSEX drop?

11,802, 6 October 2008 - The SENSEX dropped by 724.62 points amid fears of the US recession and attempts by governments across the world to save their failing banks, to fall below the 12,000 mark, closing at 11,802.

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