SENSEX today stock price is 51,941.64 USD with a volume of 15,238. At the same time, its chart fluctuates between 51,717.07 USD – 52,446.92 USD. SENSEX today stock price was a maximum of 52,516.76 USD and a minimum of 32,348.1 USD within 52 weeks. Its average volume is 13,181,357. The annual growth of SENSEX stock is 52.09 percent.
The past few weeks have focused on how SENSEX reached an all-time high and its massive drop in March. SENSEX is a combination of two words, Sensitivity and Index. SENSEX is one of 30 established companies that are financially sound, stable and performing well in the market.
Some of the biggest brands and companies in India are included in this index. Any company must have 5 key attributes to be eligible to be added to SENSEX.
SENSEX Today: Features That Companies Should Have
Companies wishing to be incorporated must be listed on the Mumbai Stock Exchange (BSE). If the company is not listed on the BSE, it loses its right to be a part of SENSEX.
The size of the company’s establishment in the market is also very important. It must be a large to medium sized company. Only the best and biggest companies can be part of this index.
A stock that wants to be included in the index must be liquid. The stock should be an easy to buy and sell stock. Liquidity is also part of the quality of the underlying business and acts as a filtering criterion.
The main source of income of the company should be core activities. Companies are classified according to the work they do and their core activities.
Sector balancing is just as important as other criteria. For any index, each sector has a weight that represents the economy. For example, any company has to maintain the balance of the sector it belongs to, whether it is part of SENSEX or not.
SENSEX Today: Investing in SENSEX
SENSEX is an organization of top companies in India. Buying any shares in SENSEX also means getting a share of these successful companies. There are 2 ways to invest in SENSEX. Let’s take a look at these two options in this topic.
You can buy SENSEX today shares directly simultaneously with SENSEX. You have the opportunity to invest directly in SENSEX and its subsidiaries. Thus, regardless of your investment, you will invest in the same weight with SENSEX.
In addition to the first option, you can also invest in index mutual funds. This may be a better option to invest in SENSEX.
The first option we mentioned is a more expensive form of investment compared to the second option because India does not give access to buy all stocks. So you can buy a part of a stock, not the whole.
For example, suppose an investor wishes to invest Rs 5,000 in SENSEX. She/He must first purchase 1 share of Reliance at a current rate of Rs 2000. Therefore, if she/he buys Reliance shares worth Rs 2000, 40% of his invested amount will equal 40% of Reliance’s weight. In fact, this percentage of 40% should be 15%.
Part of Reliance stock cannot be bought, but all of it must be bought. In addition, stock weight is a variable that changes daily. The weight you have depends on the rise and fall of the stock. Managing stocks directly can be challenging, depending on their weight. This will make it difficult to invest directly in SENSEX.
Investing in SENSEX will be much simpler and cheaper with the 2nd option we offer to avoid this complexity and invest in a cheaper way. Fund managers manage investments in funds in proportion to the weight of the relevant stock in SENSEX.