GS PrelimsEconomyStock Market2000

A rise in 'SENSEX' means

A

a rise in prices of shares of all companies registered with Bombay Stock Exchange

B

a rise in prices of shares of all companies registered with National Stock Exchange

C

an overall rise in prices of shares of group of companies registered with Bombay Stock Exchange

D

a rise in prices of shares of all companies belonging to a group of companies registered with Bombay Stock Exchange

Correct Answer: Option C

Explanation

1. The SENSEX (Sensitive Index) is the primary stock market index for the Bombay Stock Exchange (BSE). 2. It represents a basket of 30 large, actively traded, and representative stocks listed on the BSE. 3. A rise in the SENSEX value signifies an overall rise in the market prices of the shares belonging to this specific group of companies. 4. It reflects the general market trend and investor sentiment, but it does not necessarily mean the prices of shares of *all* companies listed on the BSE have increased.

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