The Sensex is basically an index for the Bombay Stock Exchange (BSE) (established in 1875). Sensex as an index is used to measure the performance of the Indian market. It is composed of 30 fundamentally strong and actively traded stocks You can also read;https://investorq.com/question/what-is-index-number-


Sensex reflects the market movement thus if this index increases it means there is a general increase in the prices of shares and vice versa. It helps to track the growth development of Indian sectors and volatility of them.

You can refer the below formula;

Sensex= free-float market capitalization of 30 selected companies /25041.24 crores* 100