{"id":7657,"date":"2025-07-11T09:40:22","date_gmt":"2025-07-11T09:40:22","guid":{"rendered":"https:\/\/lemonn.co.in\/blog\/?post_type=glossary&#038;p=7657"},"modified":"2025-07-11T09:40:23","modified_gmt":"2025-07-11T09:40:23","slug":"sensex-2","status":"publish","type":"glossary","link":"https:\/\/lemonn.co.in\/blog\/glossary\/sensex-2\/","title":{"rendered":"Sensex"},"content":{"rendered":"<p><strong><a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/sensex\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>Sensex<\/a><\/strong> is short for <strong>&#x201C;<a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/stock-exchange\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">Stock Exchange<\/a> Sensitive <a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/index\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>Index<\/a>.&rdquo;<\/strong><br>It&#x2019;s the <strong>main index of the Bombay Stock Exchange (<a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/bse\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>BSE<\/a>)<\/strong> and shows how India&#x2019;s top 30 companies are performing.<\/p>\n\n\n\n<p>You can think of Sensex like a <strong>thermometer for the Indian stock market<\/strong>.<br>When the Sensex goes up, it means most big companies are doing well.<br>When it drops, it means they&#x2019;re not doing so well.<\/p>\n\n\n\n<h2 id=\"sensex-meaning-in-simple-words\" class=\"wp-block-heading\"><strong>Sensex Meaning in Simple Words<\/strong><\/h2>\n\n\n\n<p>Sensex is a number that reflects the <strong>average movement of the top 30 <a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/stocks\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>stocks<\/a><\/strong> listed on the BSE. These companies are selected based on:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Size (<a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/market-value\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">market value<\/a>)<\/li>\n\n\n\n<li><a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/trading\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>Trading<\/a> <a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/volume\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>volume<\/a><\/li>\n\n\n\n<li>Reputation<\/li>\n<\/ul>\n\n\n\n<p>These are big and trusted names like Reliance, TCS, Infosys, and HDFC Bank.<\/p>\n\n\n\n<h2 id=\"why-is-sensex-important\" class=\"wp-block-heading\"><strong>Why is Sensex Important?<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>It shows the <strong>overall health of the Indian economy<\/strong><\/li>\n\n\n\n<li>Used by investors to understand <strong>market trends<\/strong><\/li>\n\n\n\n<li>Helps compare how your investments are performing<\/li>\n<\/ul>\n\n\n\n<h2 id=\"how-is-sensex-calculated\" class=\"wp-block-heading\"><strong>How is Sensex Calculated?<\/strong><\/h2>\n\n\n\n<p>Sensex is calculated using the <strong>free-float <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/market-capitalization\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">market capitalization<\/a> method<\/strong>.<\/p>\n\n\n\n<p><strong>Simple Formula:<\/strong><\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><strong>Sensex = (Current Market Value &#xF7; Base Market Value) &#xD7; Base Index Value<\/strong><\/p>\n<\/blockquote>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Base year<\/strong> = 1978&#x2013;79<\/li>\n\n\n\n<li><strong>Base index value<\/strong> = 100<\/li>\n\n\n\n<li>Only the <strong>free-float market cap<\/strong> (<a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/shares\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>shares<\/a> available for trading) is considered<\/li>\n<\/ul>\n\n\n\n<h2 id=\"milestones-in-sensex-history\" class=\"wp-block-heading\"><strong>Milestones in Sensex History<\/strong><\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table><thead><tr><th>Year<\/th><th class=\"has-text-align-left\" data-align=\"left\">Milestone<\/th><\/tr><\/thead><tbody><tr><td>1990<\/td><td class=\"has-text-align-left\" data-align=\"left\">Crossed 1,000<\/td><\/tr><tr><td>2006<\/td><td class=\"has-text-align-left\" data-align=\"left\">Crossed 10,000<\/td><\/tr><tr><td>2014<\/td><td class=\"has-text-align-left\" data-align=\"left\">Crossed 25,000<\/td><\/tr><tr><td>2020<\/td><td class=\"has-text-align-left\" data-align=\"left\">Crossed 50,000<\/td><\/tr><tr><td>2024<\/td><td class=\"has-text-align-left\" data-align=\"left\">Crossed 75,000<\/td><\/tr><tr><td>2025<\/td><td class=\"has-text-align-left\" data-align=\"left\">Close to 80,000 mark (as of mid-2025)*<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>(*Check latest numbers for up-to-date value)<\/p>\n\n\n\n<h2 id=\"real-life-example\" class=\"wp-block-heading\"><strong>Real-Life Example<\/strong><\/h2>\n\n\n\n<p>If Sensex goes up by 500 points in a day, it means the average value of these 30 companies has increased. So, if you&#x2019;ve invested in large-cap <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/mutual-fund\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">mutual fund<\/a>s or stocks, you likely made a gain that day.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Sensex is short for &#x201C;Stock Exchange Sensitive Index.&#x201D;It&#x2019;s the main index of the Bombay Stock Exchange (BSE) and shows how India&#x2019;s top 30 companies are performing. You can think of Sensex like a thermometer for the Indian stock market.When the Sensex goes up, it means most big companies are doing well.When it drops, it means [&#x2026;]<\/p>\n","protected":false},"author":9,"featured_media":0,"menu_order":0,"template":"","meta":{"footnotes":""},"class_list":["post-7657","glossary","type-glossary","status-publish","hentry"],"blocksy_meta":[],"_links":{"self":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary\/7657","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary"}],"about":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/types\/glossary"}],"author":[{"embeddable":true,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/users\/9"}],"version-history":[{"count":1,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary\/7657\/revisions"}],"predecessor-version":[{"id":7658,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary\/7657\/revisions\/7658"}],"wp:attachment":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/media?parent=7657"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}