Market Analysis

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).

Disclaimer: This article is for educational purposes only and does not constitute SEBI-registered investment advice. Consult a SEBI-registered investment advisor before making investment decisions.

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.

Analyse any Indian stock using Sensex

Ask Orion: “What is the Sensex for [stock] and how does it compare to peers?”

Analyse with Orion

Frequently 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

Use Sensex Analysis on Any NSE Stock

VestAI’s Orion AI surfaces Sensex alongside RSI, MACD, PE, ROE and more — 10 free queries per month.

Try VestAI Free