Do you invest in Indian Companies Stocks? If yes, then you must be aware of Sensex, and if not, or you don’t know what Sensex means and how it gets calculated, then don’t worry; at the end of this article, you will be aware of Sensex and its related information.
You must have seen in news channels that Sensex fluctuates daily. Some specific business channels and YouTube Channels cover it live and provide all updates to investors and the general public.
Let’s understand what Sensex means, and in this article, we will also share the prediction of Sensex in 2025.
What does Sensex mean, and how does it get calculated?
Generally, all developed and developing countries have their stock exchange. There are two major stock exchanges in India: the Bombay Stock Exchange and National Stock Exchange.
Thousands of companies are registered in these Stock exchanges, if we want to check the overall performance of a Stock Exchange, i.e., Whether companies registered in the Stock Exchange are performing well or not.
For the performance’s evaluation, there are two measurements, Sensex and Nifty.
Sensex shows the average trend of the top 30 Companies on the Bombay Stock Exchange.
At the time of writing this article, the current value of Sensex is 57,919.97. This alone doesn’t mean anything.
To get meaningful results, you must compare them with previous results to know whether the market is showing a positive or negative trend.
Importance of Sensex
Sensex is vital in deciding whether you should buy or sell your shares. Generally, these top thirty companies are big enough, and downfall/growth in their share value can easily affect the market.
You can check multiple times; investment gurus refer to Sensex to predict overall market demand because these top thirty companies became eligible to be counted in Sensex with the merit of free float public, i.e., the capital held by the people only.
Limitations of Sensex
Sensex has pros and cons; there is no doubt that Sensex helps predict market outcomes, but sometimes it fails because, in Sensex, only the top thirty companies are listed.
That’s why you get only sample information, and despite positive growth in Sensex, you can lose money.
Approx. 60 to 70% of predictions are correct, but there are chances of contrasts, so you should be careful before investing in any company.
Don’t solely depend on Sensex for your investment prediction,
Sensex Prediction for 2025
Current Sensex is around 58,000, typically growing at a CAGR of 13 to 14%. With the current value and growth rate, Sensex is likely to hit 70,000 by the end of 2025.
However, there are chances it surpasses 70,000 or is even not able to touch 70,000.
It solely depends on the market’s performance; let’s wait to see results and hope for the best.
Conclusion
This article provides information regarding Sensex and shares the prediction for 2025. Share your valuable thoughts about the content and let us know how we can improve it further.
