Sushant Nair presented on the SENSEX index for an MBA course. The SENSEX is an index of 30 large, well-established companies listed on the Bombay Stock Exchange that represents the overall market. It is a market capitalization-weighted index, meaning the weight of each stock is determined by its market value. The SENSEX provides an indicator of whether stock prices have generally risen or fallen on the BSE.

1. PRESENTATION
ON:SENSEX
PREPARED
BY:SUSHANT
NAIR
COURSE:MBA( I
SEM)

2. WHAT IS SENSEX?
The sensex,short form of the
BSE-sensitive index,is a
"market capitalization-weighted"
index of 30 stocks
representing sample of
large,well established and
financially sound companies.

3. MEANING OF SENSEX:
SENSEX is an index, an index is
basically an indicator. It gives you a
general idea about whether most
of the stocks have gone up or most
of the stocks have
gone down.The sensex is an
indicator of all the
prices of the major 30 companies of
the BSE(Bombay Stock Exchange).

4. To measure market moments
Benchmark for funds
performance
For index based derivative
products

5. 1. The market capitalization of each of the 30 companies comprising
the index is first determined by multiplying the price of their stocks
with the number of shares issued by that company.
2. The market capitalization is then multiplied to the free-float factor
to derive the free-float market capitalization.
3. The free-float market capitalization of the Index constituents is
then divided by a number known as the Index Divisor. This index
divisor is the sole link to the original base period value of the index.
This value provides for comparison of the index over a period of
time.

6. •Stock
•Bull market
•Broker
•Bear market

8. Broker:
A member of the stock exchange who is licensed to
buy or sell shares on his own or on his clients behalf.
Bear market:
A bear market refers to a continuous phase of
declining share prices.Bear market is characterized
by over all pessimism as market participants expect
price to decline in future.

9. •An indicator of the faith of the investors.if it is high its shows
that economic conditions are quite good and the future is
prosperous.
•Foreign investors get attracted towards investing in the
country if sensex is rising, because they think its safe to invest,
so this brings foreign investment in country which causes
further development.
•When sensex is declining neither local or foreign investors
invest hence leading to downfall in economy of country.

10. Graph showing sensex of few years:

11. Thank you