text: what is sensex? please explain in simple terms the bse sensex or bse sensitive index is a value-weighted index composed of 30 companies with the base april 1979 = 100. it consists of the 30 largest and most actively traded stocks, representative of various sectors, on the bombay stock exchange. the set of companies in the index is essentially fixed. these companies account for around one-fifth of the market capitalization of the bse.  the sensex, short form of the bse-sensitive index, is a "market capitalization-weighted" index of 30 stocks representing a sample of large, well-established and financially sound companies. it is the oldest index in india and has acquired a unique place in the collective consciousness of investors. the index is widely used to measure the performance of the indian stock markets. sensex is considered to be the pulse of the indian stock markets as it represents the underlying universe of listed stocks at the stock exchange, mumbai. further, as the oldest index of the indian stock market, it provides time series data over a fairly long period of time (since 1978-79).  for a in depth understanding, visit http://www.tradersedgeindia.com/bse_sens...