What is Sensex? An Easy Guide for Beginners

When you start your laptop or computer, you might often see a dashboard or ticker displaying numbers with labels like "Sensex" or "Nifty." For many people, this might be confusing, especially if you're not familiar with the stock market. So, what exactly is Sensex, and why is it important? Let's break it down in simple terms. What is Sensex? Sensex is short for the "Sensitive Index." It is the benchmark index of the Bombay Stock Exchange (BSE), which is one of the oldest stock exchanges in India. The Sensex tracks the performance of 30 of the largest and most financially sound companies listed on the BSE. These companies represent various sectors of the economy, such as banking, IT, energy, and more. Why is Sensex Important? The Sensex serves as a barometer for the Indian stock market. When the Sensex goes up, it usually means that the overall market is doing well and that most companies are performing positively. Conversely, if the Sensex goes down, …