The Full Form of SENSEX is Sensitive Index.
The Sensex is an indicator of a stock market. There are many other indicators other than Sensex.
Therefore, the stock market is a place where you can sell or buy shares or stocks of any company.
However, an index is basically an indicator that gives us a general idea about stocks going up or down in the stock market.
Sensex is an indicator of all the major companies listed on the Bombay Stock Exchange which is situated at Bombay.
The Sensex goes up when prices of stock of major companies on the Bombay Stock Exchange goes up and it goes down when the latter goes down. The same condition applies to Nifty also.
Therefore, Sensex and Nifty are the major stock exchanges in the country. Most of the stock trading in the country is done through the Bombay Stock Exchange.
How the Sensex is calculated:(Full Form)
Therefore, Sensex is calculated by consideration stock prices of 30 different companies listed on BSE, Sensex is calculated using the free-float market capitalization method. The free-float market capitalization method is one of the best methods for calculating a stock market index.