What Is Sensex?
The Sensex is a simple way to see how some of the largest and most important companies listed on BSE are doing together.
Start the lessonIntroduction
A quick view of selected BSE shares
The Sensex, formally the S&P BSE Sensex, is a stock-market index linked to BSE. It follows 30 selected companies listed on the exchange, so it gives a quick picture of how a big part of the Indian market is moving. It is a market indicator, not a promise that every stock or portfolio will behave the same way.
Think of it like a scoreboard
The Sensex combines the moves of selected companies into one number. It helps you track a big slice of the market, not one stock and not the whole market.
What it tracks
30 selected companies listed on BSE
The index follows a selected group according to its rules.
A selected group
The Sensex follows 30 companies listed on BSE. It does not include every company in India.
A weighted index
The companies are weighted using a free-float market-capitalisation method, so they do not all influence the index equally.
The selected companies can change during index reviews. BSE is the exchange; Sensex is an index associated with it.
How the index moves
Try a simple points example
Change the starting value or percentage move to see how a percentage change affects index points.
Points change
+730
Illustrative new value
73,730
Calculation
73,000 × (1 + 1%)
This is a math illustration, not a live index value or forecast. Actual index movements depend on constituent shares and index rules.
What it can and cannot tell you
An index is a guide, not a guarantee
It does not represent every share
The Sensex follows selected BSE-listed companies, not every company or security in India.
Its companies can move differently
The index can rise even when some of its companies' shares fall, and vice versa.
You cannot buy the index itself
The index is a measurement. Some index funds and ETFs aim to track it; these are separate investment products with their own risks and costs.
It does not promise returns
A rising Sensex does not guarantee a profit on any particular investment.
Key points
What to remember about Sensex
- Sensex is an index associated with BSE.
- It tracks 30 selected companies listed on BSE.
- It gives a snapshot of this group, not the whole market.
- It is not a share you can buy directly.
- Some funds and ETFs aim to track it.
- Its movement does not guarantee investment returns.
This lesson is for education only, not personalized financial, tax, or investment advice. Investments in securities are subject to market risks.
Test yourself
5-question quiz
Choose one answer for each question, then check your score.