How many companies are included in the BSE Sensex ?
- 25
- 30
- 50
- 111
Answer: b. 30
Answer Explanation
As one of the most widely followed stocks on the Indian stock market, the BSE Sensex includes the 30 largest and most actively traded stocks on the BSE and covers a wide spectrum of industry sectors.
Based on market conditions and company performance, the constituents of the BSE Sensex may change from time to time. Each company in the index is weighted based on its market capitalization and number of freely tradable shares available for public trading, using a free-float market capitalization-weighted methodology.
Why the other options are not correct
a. 25:
The BSE Sensex does not include 25 companies. It includes 30 companies, as mentioned above.
c.50:
The BSE Sensex does not include 50 companies. It includes 30 companies, making option (c) inaccurate.
d.111:
The BSE Sensex does not include 111 companies. It represents the performance of the 30 largest companies, so option (d) is incorrect.
Conclusion
In India, the BSE Sensex index represents the performance of the top 30 companies listed on the Bombay Stock Exchange. Market participants and investors closely monitor the BSE Sensex since it provides valuable insight into the Indian stock market’s overall direction. For investors and traders to make informed decisions based on the broader market trends, they need to understand the composition and workings of the BSE Sensex.