Sensex

Sensex is the value-weighted index of the companies listed on the stock exchange. Bombay Stock Exchange (BSE) in 1986 came out with a stock index that subsequently became the barometer of the Indian stock market. Sensex is a basket of 30 constituent stocks representing a sample of large, liquid and representative companies. That's why it's also known as BSE 30 Sensex. The base year of sensex is 1978-79 and the base value is 100.

Sensex is calculated using the "Free-float Market Capitalization" methodology. As per this methodology, the level of index at any point of time reflects the Free-float market value of 30 component stocks relative to a base period.