what is the sensex 
the sensex is the benchmark index of the bse in india the sensex comprises 30 of the largest and most actively traded stocks on the bse and provides a gauge of india s economy it is float adjusted and market capitalization weighted the sensex is reviewed semiannually each year in june and december created in 1986 the sensex is the oldest stock index reflecting india s markets and is operated by standard poor s s p analysts and investors use it to observe the cycles of india s economy and the development and decline of particular industries 1investopedia julie bangunderstanding the sensexthe sensex was launched on jan 1 1986 it is both a bellwether and an investable index used to track the performance of india s 30 largest and most financially sound companies these companies are listed on the bse previously known as the bombay stock exchange and represent some of the biggest and most important sectors of the indian economy as such it is india s most tracked index 1the sensex is calculated in indian rupees inr and u s dollars as of dec 29 2023 the mean total market cap of the index was 141 7 billion the top five constituents listed on the index as of dec 29 2023 were the evolution of the indian economy has shaped and changed the methodology of the sensex it was calculated based on the market cap when it was first launched but shifted to a free float capitalization method in september 2003 this provided a weighting for the effect of a company on the index the index uses a company s float rather than its outstanding shares which means it doesn t include restricted stocks that can t be readily sold such as those held by company insiders despite all the changes to the methodology the index s objectives haven t changed at all 3its constituents are selected by the s p bse index committee based on several criteria the term sensex is a portmanteau of the words sensitive and index history of the sensexthe index experienced enormous growth since india opened up its economy in 1991 large gains occurred in the 21st century when it rose from around 5 000 in early 2000 to nearly 42 000 in january 2020 this has mainly been the result of india s surging economy which for years has grown at one of the fastest paces in the world 6the outbreak of the global coronavirus pandemic in early 2020 slowed india s economy like it did all economies around the world the sensex fell to below 30 000 in 2020 like most economies however india has bounced back since the coronavirus pandemic this is reflected in the strong gains in the sensex to levels well above pre pandemic times in 2021 the index passed 50 000 and in 2022 it passed 60 000 in 2023 it crossed the 65 000 mark 76india s expanding economy owes much to the rise of the nation s middle class and vice versa according to one study nearly 80 of the nation s households will be middle income by 2030 up from about 50 in 2019 the middle class is an important driver of consumer demand 8