ECONOMICS
FINANCIAL MARKETS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A rise in prices of shares of all companies registered with the Bombay Stock Exchange
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An overall rise in prices of shares of all companies registered with the National Stock Exchange
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An overall rise in prices of shares of group of companies registered with the Bombay Stock Exchange
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A rise in prices of shares of all companies belonging to a group of companies registered with the Bombay Stock Exchange
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Detailed explanation-1: -c Increase in SENSEX reflects the overall mood of the economy. A rise in it means that investors and FIIs are positive about the growth of Indian economy and expect that it will be sustained in future. But a rise in SENSEX doesn’t necessarily mean that the price your stocks also moves up.
Detailed explanation-2: -an overall rise in prices of shares of group of companies registered with Bombay Stock Exchange.
Detailed explanation-3: -BSE Limited, also known as the Bombay Stock Exchange (BSE), is an Indian stock exchange which is located on Dalal Street in Mumbai. Established in 1875 by cotton merchant Premchand Roychand, a Jain businessman, it is the oldest stock exchange in Asia, and also the tenth oldest in the world.
Detailed explanation-4: -The term Sensex refers to the benchmark index of the BSE in India. The Sensex is comprised of 30 of the largest and most actively traded stocks on the BSE and provides a gauge of India’s economy. It is float-adjusted and market capitalization-weighted.
Detailed explanation-5: -SENSEX is a primary index of the Bombay Stock Exchange of India. This index comprises the top 30 stocks of the exchange. The movement of SENSEX and the economy of India is correlated, as substantiated by historical data.