How to Invest in Sensex in India 2023

Similar to Nifty 50, the SENSEX is a basket of the top 30 companies listed on the BSE. While the nifty 50 is an index of top 50 companies which are listed on NSE.

What is Sensex

Sensex (Stock Exchange Sensitive Index) is a market index consisting of 30 top-performing companies listed on the Bombay Stock Exchange in India.

Sensex was launched 1986 by the Bombay Stock Exchange and is considered a benchmark index for the Indian equity market’s performance.

The stocks included in Sensex are selected by the S&P BSE Index Committee based on five criteria. 

These criteria are as follows:

  • The companies must be listed on the Bombay Stock Exchange in India.
  • It must consist of large or mega-cap stocks.
  • It should be relatively liquid.
  • The companies must generate earnings from core activities.
  • The companies must contribute to keeping the sector balanced with the country’s equity market.

List of sectors in Sensex 

Sensex 30 companies cover 18 different sectors to provide a diverse representation of the Indian stock market.

The banking sector holds the highest weightage in the index.

Sensex sector weightage
IT Consulting & Software14.61%
Integrated Oil & Gas11.84%
Personal Products7.29%
Cigarettes,Tobacco Products5.43%
Construction & Engineering4.13%
Cars & Utility Vehicles3.35%
Housing Finance3.17%
Telecom Services2.84%
Holding Companies2.42%
Electric Utilities2.35%
Cement & Cement Products1.26%
Iron & Steel/Interm.Products1.26%
Finance (including NBFCs)1.18%
Packaged Foods1.12%

You may like to read our latest article how to invest 50 lakhs for monthly income.

List of Sensex 30 Companies With Weightage (As on April 2023)

Each stock in the Sensex has a different weightage in the index. The weightage of a stock in sensex is determined by its free-float market capitalization. 

Free-float market capitalization means the total market value of a company’s publicly traded shares that are available for trading in the stock market. The larger the free float market cap, the higher will be the weightage.

Sr. No. NameIndustryWeightage
1.Reliance Industries Ltd.Integrated Oil & Gas11.84%
2.HDFC Bank Ltd.Banks10.76%
3.ICICI Bank Ltd.Banks9.27%
4.Hindustan Unilever Ltd.Personal Products7.29%
5.Infosys Ltd.IT Consulting & Software6.46%
6.ITC Ltd.Cigarettes,Tobacco Products5.43%
7.TCS IT Consulting & Software4.77%
8.Larsen & Toubro Ltd.Construction & Engineering4.13%
9.Kotak Mahindra BankBanks4.12%
10.Axis BankBanks 3.41%
12.HULHousing Finance3.17%
13.Bharti AirtelTelecom Services2.84%
14.Bajaj FinanceHolding Companies2.42%
15.Asian PaintsFurniture,Furnishing,Paints1.89%
16.Mahindra & Mahindra Ltd.Cars & Utility Vehicles1.7%
17.Maruti Suzuki IndiaCars & Utility Vehicles1.65%
18.HCL TechIT Consulting & Software1.63%
19.Titan CoOther Apparels & Accessories1.59%
20.Sun PharmaPharmaceuticals1.54%
21.UltraTech CementCement & Cement Products1.26%
22.Tata SteelIron & Steel/Interm.Products1.26%
23.Bajaj FinservFinance (including NBFCs)1.18%
24.NTPCElectric Utilities1.18%
25.Power GridElectric Utilities1.17%
26.Nestle IndiaPackaged Foods1.12%
27.IndusInd BankBanks1.09%
28.Tech MahindraIT Consulting & Software0.92%
29.Dr Reddy’s LabsPharmaceuticals0.87%
30.WiproIT Consulting & Software0.83%

It is important to note that the weightage of each company in Sensex can change over time, depending on the company’s performance and the prevailing market conditions.

The top 10 stocks represent almost 67.48% of the total weightage of Sensex 30 companies. The other 20 stocks also have their respective weightage, but their contribution to the index is relatively less.

You can get the regular monthly income to invest your 10 lakhs.

How is Sensex Calculated

Sensex is calculated using the free-float market capitalization method. 

Free-float market capitalization is calculated by multiplying the company’s total outstanding shares by its market price and adjusting for shares held by the government, promoters, and other strategic investors.

Free Float Market Capitalization = Market Capitalization * Free Float Factor

Where market capitalization is the market value of the company, which is calculated as:

Market capitalization = Share Price Per Share * Number of Shares Issued by the Company

Once the free-float market capitalization of all the companies in Sensex is calculated, the index is computed using the following formula:

Sensex Value = (Total Free-float market capitalization/ Base market capitalization) * Base period index value.

The base year for calculating the Sensex is 1978-79, and the base value is 100 index points. This means that if the Sensex is at 50,000, it is 500 times higher than its base value of 100.

How To Invest In Sensex

Likewise invest in Bank Nifty, you can invest in Sensex through Index funds, ETF, or direct equity. 

You can choose the method depending on your investment goals, risk appetite, and financial situation. 

Let’s discuss each of them:

#1. Invest in Sensex Through Exchange-Traded Funds (ETFs) 

ETFs are investment funds that track the performance of an underlying index such as Sensex. By investing in an ETF that tracks Sensex’s performance, you can get exposure to the index’s top-performing companies without buying individual stocks. 

ETFs are traded on stock exchanges and can be bought and sold like individual stocks. You can also invest in bank nifty through ETFs to get the potential return of banking sector.

Steps to Invest in Sensex ETFs: 

Step #1. You need to open a demat and trading account to invest in Sensex. 

Step #2. Log in to your Demat account using your credentials.

Step #3. You can add the funds to your trading account through net banking, debit card, or UPI.

Step #4. Search for Sensex ETFs on your broker’s trading platform.

search Sensex ETF

Step #5. Click on the “Buy” button to place the order.

Click on buy to place the sensex etf

Step #6. Enter the quantity of the ETF, set the price and choose order type such as market price or limit order.  

Step #7. Swipe on the ‘Buy’ button to place your order.

place your order for etf sensex

You can track the performance of the Sensex ETFs in the holding section of your trading platform. You can also invest in Sensex by using the technical indicators to predict the next candlestick pattern.

#2. Invest in Sensex Through Index Funds

Index funds are mutual funds that track the performance of an underlying index such as Sensex. These funds invest in the same stocks as the index and aim to replicate the index’s performance. 

Index funds can provide you with a low-cost and efficient way to invest in Sensex.

Steps to Invest in BSE Sensex index funds: 

Step #1. You need to open a demat and trading account with a registered stockbroker. You can check the step-by-step process to open a Zerodha account with low brokerage fees.

Step #2. You can research and choose the best index fund that tracks the performance of the BSE Sensex index.

choose BSE sensex index fund

Step #3. Invest the desired amount of capital in the chosen index fund.

Step #4. You can select between starting a SIP or making a one-time lump sum investment. 

Step #5. Complete your payment process.

Step #6. Monitor your index fund investment regularly and make changes as needed.

#3. Invest in Sensex Through Direct Equity Investment

You can directly invest in the Sensex companies with the same percentage as weightage in the index. This means that you can directly buy the stocks in the quantity which is equivalent to the stock’s weightage.

You can get exposure to Sensex’s performance and potentially generate higher returns.

However, investing in direct equity in the same proportion of Sensex Index is difficult. The primary reason for this is that you cannot purchase stocks in fractions, and buying individual stocks to maintain the same ratio would require a higher investment. 

As a result, you can choose the alternative investment options, such as index funds or exchange-traded funds (ETFs), which can be more practical for you to invest in the Sensex.

To invest in Sensex through direct equity investment, here are the steps to follow:

Step #1: Open a demat and trading account 

To invest in Sensex through direct equity investment, you need to open a demat and trading account with a registered stockbroker in India. You can choose from several online brokerage firms such as Zerodha, Groww, or Upstox.

Ensure that you select a broker with a good reputation, low brokerage fees, and excellent customer service. You can check out our research report on top 20 stock brokers in India 2023.

Step #2: Add funds to your trading account 

You need to add funds to your trading account with the desired amount of capital. You can add funds through netbanking, debit card or UPI. 

Step 3: Research & choose the stock you want to invest in 

Before investing in individual stocks, you need to research the individual companies listed on the BSE that are part of the Sensex index. Once you have researched the companies, you can select the ones you want to invest in. 

choose sensex equity stock

Step 4: Place the orders 

You can place buy orders through your trading account. Ensure that you use limit orders instead of market orders to have more control over the buy price.

click on buy to invest in sensex equity

Follow the steps to place your buy order:

  • Go to the watchlist in your trading platform 
  • Search the specific stock in the search bar
  • Click on the “Buy” button
  • Enter the no. of stocks you want to buy
  • Review and submit the order
place your order for sensex

Step 5: Monitor your portfolio regularly 

You can monitor your portfolio regularly and make changes as needed based on market conditions or changes in the company’s fundamentals.

You can check out the list of top stock investors on Twitter in India based on their followers.


What is the minimum amount required to invest in Sensex ETFs?

The minimum amount required to invest in Sensex index funds is one unit.

What is the minimum amount required to invest in Sensex index funds?

The minimum amount required to invest in Sensex index funds as low as Rs. 500 through monthly SIPs.

What are the risks of investing in Sensex?

The risks of investing in Sensex include market volatility, company-specific risks, and economic risks.

Can I invest in Sensex through mutual funds?

Yes, you can invest in Sensex through mutual funds that track the performance of the index.

What is the S&P BSE sensex?

The S&P BSE Sensex is a stock market index that tracks the performance of the 30 most significant and financially stable companies across key sectors of the Indian economy listed on the BSE Ltd.

What is the difference between Sensex and Nifty?

The Sensex is an index of the top 30 companies listed on the BSE, while the Nifty is an index of the top 50 companies listed on the National Stock Exchange (NSE) in India.

In what frequency sensex calculation is done?

The Sensex is calculated in real-time during market hours and updated every 15 seconds.

What is the computing method of sensex?

The Sensex is computed based on the free-float market capitalization-weighted methodology.

What is the main objective of sensex?

The main objective of Sensex is to provide a benchmark for the performance of the Indian stock market and reflect the market sentiments towards the top-performing companies listed on the BSE.

About Rajan Dhawan

Rajan has covered personal finance and investing for over 5 years. Previously, he was in the IT field for 8 years after completing his MCA but his deep interest in personal finance led him to become an investing expert. He is passionate about investing, stocks, startups, and cryptos.

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