What is the Sensex, and how is it calculated?
Market Basics
The Sensex is the benchmark index of 30 large, financially sound companies listed on the BSE, calculated using the free-float market capitalization method.
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Introduced in 1986, the Sensex tracks the weighted average performance of 30 top BSE-listed companies across sectors. Its value moves based on free-float market cap changes of constituents, reviewed and rebalanced periodically by an index committee, making it India’s most-watched market barometer.
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