The Sensex full form is Stock Exchange Sensitive Index. The SENSEX, commonly known as the BSE, is India’s oldest stock exchange (Bombay Stock Exchange). It is a free-float, economy-weighted index comprised of 30 financially strong and well-established companies listed on the Bombay Stock Exchange. In India, these businesses are known as blue chip corporations. Representatives of India’s diverse industries make up the 30 constituent corporations that are among the most successful and most traded equities.
S = Stock
SE = Sensitive
I = Index
The advantages of SENSEX are as follows:
- SENSEX increases a company’s visibility and improves its reputation. It increases the market value of the company’s stock while also leveraging the same valuation.
- It improves the company’s reputation even more because it includes the top-performing enterprises that are notable in their own right.
- It allows a company to increase its share capital.
- Mergers, expansions, and acquisitions are among the growth options offered by SENSEX.
- It also has various other advantages, such as the ability to improve worker efficiency in risk allocation and rewards.