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.

Hint:

The index tracks live stock price movements, so think about how often prices actually change on the exchange.

Answer 1

The Correct Option is C

This question checks understanding of how the SENSEX, the benchmark index of the Bombay Stock Exchange, is worked out during trading hours.

1. Every half an hour: A fixed half hourly update would not reflect fast moving stock prices, so this is not how it works.
2. Every hour: An hourly value would be far too slow for an index tracked closely by traders and investors, so this option is wrong.
3. Real time: The SENSEX is recalculated continuously through the trading session. Every time the price of one of its constituent stocks changes, the index value is updated instantly using the free float market capitalisation method, so this is correct.
4. 6 times a day: A fixed six times a day schedule does not match how a live market index behaves, so this option is also wrong.

Because stock prices change constantly during market hours and the index must reflect that instantly, the SENSEX is computed in real time.

Let's summarize:

• The SENSEX tracks 30 large, actively traded stocks on the Bombay Stock Exchange.
• Its value updates continuously as the prices of these stocks change during trading hours.
• This is why it is described as being calculated in real time, not at fixed intervals.

The correct answer is option 3, Real time.