By VestAI Research | Last updated: March 2026
Sensex: Meaning, Definition & Indian Stock Market Examples
BSE's benchmark index of 30 large-cap Indian companies — India's oldest index (1986).
What is Sensex?
The Sensex (S&P BSE Sensex) is the benchmark index of the Bombay Stock Exchange, comprising 30 of the largest and most actively traded companies on BSE. It was launched in 1986 with a base value of 100 (April 1979). The Sensex hitting major milestones (10K, 50K, 60K, 80K) are celebrated as markers of India's economic progress.
Sensex — Indian Stock Market Example
Sensex crossed 80,000 in 2024, a milestone celebrated as a reflection of India's GDP growth story. The index includes Reliance, HDFC Bank, ICICI Bank, TCS, Infosys, L&T, and other blue chips. Sensex was long the primary Indian index before Nifty 50 became dominant for F&O trading.
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Analyse with OrionFrequently Asked Questions about Sensex
Is Sensex or Nifty 50 more important for Indian investors?
Both are important. Nifty 50 is more widely used for F&O trading and fund benchmarking today. Sensex has historical significance and is quoted on international media. Since both track large-cap Indian equities, their movements are highly correlated (~0.99 correlation). Nifty has become the standard for institutional and derivative use.
What is the Sensex base value and how is it calculated?
Base date: April 1, 1979; Base value: 100. Current Sensex = Sum of current market cap of 30 stocks (with free-float adjustment) ÷ Base year market cap × 100. It uses free-float market cap methodology, similar to Nifty 50.
Related Terms
Nifty 50
NSE's flagship index of the 50 largest Indian companies by free-float market cap.
FII / FPI
Foreign Institutional Investors — overseas funds investing in Indian markets.
Bull Market
A sustained period of rising asset prices — generally a 20%+ rise from recent lows.
Market Capitalisation
Total shares × current price — the total market value of a company.
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