📈 EconomyUPSC 2000Fundamentals of Economy

A rise in ‘SENSEX’ means:

aa rise in prices of shares of all companies regis-tered with Bombay Stock Exchange
ba rise in prices of shares of all companies registered with National Stock Exchange
can overall rise in prices of shares of group of companies registered with Bombay Stock Exchange
da rise in prices of shares of all companies belonging to a group of companies registered with Bombay Stock Exchange Indian Economy 323
✓ Correct answer: c) an overall rise in prices of shares of group of companies registered with Bombay Stock Exchange
ExplanationA rise in SENSEX indicates an overall increase in the stock prices of a group of 30 financially strong companies listed on the Bombay Stock Exchange (BSE).These companies are selected based on market capitalization, liquidity, and sectoral representation and are considered indicators of mar- ket performance.SENSEX movements reflect investor sentiment, economic conditions, corporate earnings, and global market trends.It does not mean that the prices of all companies listed on the BSE rise simultaneously.As per the Bombay Stock Exchange (BSE) reports, Sensex is widely used by investors and analysts to gauge India’s stock market trends and investment climate.12. HUMAN DEVELOPMENT AND SUSTAINABLE DEVELOPMENT 319

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