Many of us track the rise and fall of Sensex either for planning our investments or for just keeping ourselves updated about the market. But ever wondered what is Sensex and how is it calculated? What is Sensex? S&P Bombay Stock Exchange Sensitive Index (S&P BSE SENSEX), commonly referred to as Sensex, is India’s most tracked index to gauge the trend of Indian stock market. It measures the performance of the 30 largest, most liquid and financially sound companies across key sectors of the Indian economy that are listed at Bombay Stock Exchange (BSE). History of Sensex Sensex was launched on 1 st January 1986 with the base year of 1978-79 and base value of 100. Until 1 st September 2003, the Sensex was determined based on the Full Market Capitalization Method, however, from 1 st September 2003 it is being calculated as per the Free Float Market Capitalization Method. Free-float market capitalization takes into consideration only those shares issued by the company that...