Established in 1875, the Bombay Stock Exchange is Asia’s first and fastest-growing financial market. It has created an enormous amount of wealth for all investors over the years. From Equities, Debts, Mutual Funds, and Derivatives the stock exchange allows you to trade across various segments. Approximately 5,000 plus companies are listed here and the number is likely to grow in the future.
Sensex is an integral part of the BSE that has contributed to its development and the capital market of India at large. Sensex stands for Stock Exchange Sensitive Index. It is the oldest market index of BSE. It helps investors gauge the actual market positioning and choose suitable stocks for investment. It includes the top 30 performing stocks in the market. These stocks hold an attractive price and are actively traded.
You can learn more about these stocks and make a profitable investment by searching online for Sensex today.
How are Sensex stocks selected?
BSE considers the following pointers for Sensex stock selection:
- The stock should be listed on BSE.
- The stock should be either of large or mega capitalisation.
- It should possess high liquidity.
- The stock company should be generating good revenue from its core activities.
- The stock company should keep up with a specific sector balanced in parallel to the market.
Sensex stocks are not fixed. They are revised frequently considering the prevailing market condition. Invest in the stocks when they perform well in the market. For instance, the Yes Bank share price is keeping up with a decent performance. Find more information about it, buy several stocks, and reap incredible profits.
How is Sensex calculated?
Sensex value is not merely an aggregate of all its stock prices. The value gets calculated using the free-float capitalisation method. It works like the market capitalisation weighting method. The stocks having a larger market capitalisation are given more weightage in the index. However, the free float capitalisation method considers only those stocks that are freely available for trade.
How to invest in Sensex?
Open a Demat and Trading Account
A Trading and Demat Account are necessary to invest in the stock market. They hold your stocks securely electronically. A Trading Account makes it possible for you to trade for various stocks in the market.
Link your Bank Account
Link to your Demat Account to your Bank Account. This allows you to access funds easily for trading. Funds from selling your stock holding get directly credited to your Bank Account, securing your investment return.
Choose stocks
Choose any of the Sensex stocks to invest in. Alternatively, you could invest in an Index Fund that tracks the performance of BSE Sensex. Your portfolio includes all shares in similar composition as the market index. This gives you a chance to reap good returns and manage your risk appetite.