Question

At what frequency SENSEX calculation is carried out?

• A. Every half an hour
• B. Every hour.
• C. Real time
• D. 6 times a day

Answer 1

The Correct Option is C

The SENSEX, officially known as the BSE Sensex (Bombay Stock Exchange Sensitive Index), is India’s oldest stock market index. It represents the 30 most financially sound and established companies listed on the Bombay Stock Exchange.

Step 1 — What is meant by SENSEX calculation?
The calculation of the SENSEX involves tracking the market capitalization of these 30 companies, adjusted for free-float (shares available for trading), and then computing a weighted index value. This index reflects the overall performance of the Indian stock market.

Step 2 — Frequency of calculation:
The stock prices of the constituent companies change constantly during trading hours. As a result, the SENSEX index value is recalculated continuously as and when prices update. This is not done on a fixed periodic basis (like hourly or daily), but rather in an ongoing manner throughout the trading session.

Step 3 — Meaning of “Real time”:
“Real time” means the index value is updated live, second by second (practically every fraction of a second), to reflect the latest trading prices. This ensures that investors and traders get the most up-to-date picture of the market’s movement without delay.

Step 4 — Contrast with other frequencies:
• If it were “daily,” the value would be fixed only once per day, which is not correct.
• If it were “hourly,” it would be less frequent and not precise for active traders.
• Therefore, only “real time” updating reflects the true dynamic nature of stock trading.

Final Answer:
The SENSEX calculation is carried out in Real time. This corresponds to Option (C).