The Sensex is India's oldest and most-quoted stock index. If you follow Indian markets, it's one of the two numbers (alongside the Nifty) that everyone watches.
What the Sensex is
Sensex — short for "Sensitive Index" — tracks 30 large, well-established companies listed on the BSE (Bombay Stock Exchange). It's a benchmark for the broad Indian market and a barometer of investor sentiment.
How it's built
- 30 constituents — big, financially sound companies across sectors.
- Free-float market-cap weighted — larger companies move the index more, based on shares actually available to trade.
- Constituents are reviewed periodically as companies grow or fade.
Sensex vs Nifty
The Sensex (BSE, 30 stocks) and the Nifty 50 (NSE, 50 stocks) track the same broad market and move closely together. The Nifty has more derivatives activity and is the more common choice for F&O traders.
What moves it
- Corporate earnings from its big constituents.
- Macro factors — RBI policy, inflation, the rupee, global risk sentiment.
- Foreign and domestic flows into Indian equities.
For traders
Most active traders trade the index derivatives and ETFs rather than buying all 30 stocks. As with any index, the discipline is the same: trade with the higher-timeframe trend, respect support and resistance, and keep risk fixed per trade with the position-size calculator.
The Sensex is the headline number. For trading, it's the trend and your risk plan that matter — not the index's fame.
Education only — not financial advice.