UPSC Exam > UPSC Questions > Consider the following statements regarding S...
Start Learning for Free
Consider the following statements regarding Sensex:
- It is the benchmark index of the National Stock Exchange (NSE).
- It represents the performance of the 50 largest and most actively traded stocks listed.
Which of the statements given above is/are correct?
- a)1 only
- b)2 only
- c)Both 1 and 2
- d)Neither 1 nor 2
Correct answer is option 'D'. Can you explain this answer?
| FREE This question is part of | Download PDF Attempt this Test |
Most Upvoted Answer
Consider the following statements regarding Sensex: It is the benchmar...
The NSE Nifty 50 recently managed to cross the 20,000 mark for the first time.
About Nifty:
- NIFTY is a market index introduced by the National Stock Exchange (NSE).
- It is a blended word – National Stock Exchange and Fifty coined by NSE.
- Nifty was established in 1996 with the name CNX Nifty. Further, in 2015, it was renamed Nifty 50.
- NIFTY 50 is a benchmark-based index and also the flagship of NSE.
- It represents the performance of the 50 largest and most actively traded stocks listed on the NSE.
- These 50 largest companies are from different industrial sectors and collectively represent the Stock Market and Economic Trends of India.
- It is one of the two main stock market indices in India, the other being SENSEX, a product of the Bombay Stock Exchange (BSE).
Key Facts about Sensex:
- Sensex is the benchmark index of the BSE in India.
- It was launched on January 1, 1986 as a basket of 30 stocks representing the country's largest, financially sound companies listed on the BSE.
- The term ‘Sensex’ is a blend of the words ‘Sensitive’ and ‘Index’ and was coined by stock market expert Deepak Mohini.
- The Sensex reflects the movements in the Indian stock market. It is considered the benchmark index of the Indian stock market.
What is an Index?
- A stock index is a measurement of the changes that take place in the stock market.
- It measures price movement and market performance.
- For creating an index, one has to group some stocks from the list of stocks with similar characteristics.
- This grouping of stocks can be on the type of industry, total market capitalization or the size of the company.
- Calculation:
- To calculate the value of the stock market index, one can use the values of the underlying group of stocks.
- Any change in the value of underlying stock also leads to a change in the stock index value.
- If the price of most of the stocks rises, the index will again rise and vice-versa.
- Thus, an index is indicative of changes in the market.
- It reflects the overall market investing sentiment and price movements.
Hence both statements are not correct.
Free Test
FREE
| Start Free Test |
Community Answer
Consider the following statements regarding Sensex: It is the benchmar...
Explanation:
The correct answer is option 'd' - Neither 1 nor 2.
Statement 1: It is the benchmark index of the National Stock Exchange (NSE).
This statement is incorrect. The Sensex is not the benchmark index of the National Stock Exchange (NSE). Instead, it is the benchmark index of the Bombay Stock Exchange (BSE). The Sensex is a market index that represents the performance of the top 30 companies listed on the BSE. It is calculated based on the free-float market capitalization-weighted methodology.
Statement 2: It represents the performance of the 50 largest and most actively traded stocks listed.
This statement is also incorrect. The Sensex does not represent the performance of the 50 largest and most actively traded stocks listed. As mentioned earlier, it represents the performance of the top 30 companies listed on the BSE. These 30 companies are selected based on various factors such as market capitalization, liquidity, and trading activity.
Conclusion:
In conclusion, both statements 1 and 2 are incorrect. The Sensex is the benchmark index of the Bombay Stock Exchange (BSE) and represents the performance of the top 30 companies listed on the BSE.
The correct answer is option 'd' - Neither 1 nor 2.
Statement 1: It is the benchmark index of the National Stock Exchange (NSE).
This statement is incorrect. The Sensex is not the benchmark index of the National Stock Exchange (NSE). Instead, it is the benchmark index of the Bombay Stock Exchange (BSE). The Sensex is a market index that represents the performance of the top 30 companies listed on the BSE. It is calculated based on the free-float market capitalization-weighted methodology.
Statement 2: It represents the performance of the 50 largest and most actively traded stocks listed.
This statement is also incorrect. The Sensex does not represent the performance of the 50 largest and most actively traded stocks listed. As mentioned earlier, it represents the performance of the top 30 companies listed on the BSE. These 30 companies are selected based on various factors such as market capitalization, liquidity, and trading activity.
Conclusion:
In conclusion, both statements 1 and 2 are incorrect. The Sensex is the benchmark index of the Bombay Stock Exchange (BSE) and represents the performance of the top 30 companies listed on the BSE.
Attention UPSC Students!
To make sure you are not studying endlessly, EduRev has designed UPSC study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in UPSC.
|
Explore Courses for UPSC exam
|
|
Top Courses for UPSCView all
Consider the following statements regarding Sensex: It is the benchmark index of the National Stock Exchange (NSE). It represents the performance of the 50 largest and most actively traded stocks listed.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'D'. Can you explain this answer?
Question Description
Consider the following statements regarding Sensex: It is the benchmark index of the National Stock Exchange (NSE). It represents the performance of the 50 largest and most actively traded stocks listed.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'D'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements regarding Sensex: It is the benchmark index of the National Stock Exchange (NSE). It represents the performance of the 50 largest and most actively traded stocks listed.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements regarding Sensex: It is the benchmark index of the National Stock Exchange (NSE). It represents the performance of the 50 largest and most actively traded stocks listed.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'D'. Can you explain this answer?.
Consider the following statements regarding Sensex: It is the benchmark index of the National Stock Exchange (NSE). It represents the performance of the 50 largest and most actively traded stocks listed.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'D'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements regarding Sensex: It is the benchmark index of the National Stock Exchange (NSE). It represents the performance of the 50 largest and most actively traded stocks listed.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements regarding Sensex: It is the benchmark index of the National Stock Exchange (NSE). It represents the performance of the 50 largest and most actively traded stocks listed.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'D'. Can you explain this answer?.
Solutions for Consider the following statements regarding Sensex: It is the benchmark index of the National Stock Exchange (NSE). It represents the performance of the 50 largest and most actively traded stocks listed.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'D'. Can you explain this answer? in English & in Hindi are available as part of our courses for UPSC.
Download more important topics, notes, lectures and mock test series for UPSC Exam by signing up for free.
Here you can find the meaning of Consider the following statements regarding Sensex: It is the benchmark index of the National Stock Exchange (NSE). It represents the performance of the 50 largest and most actively traded stocks listed.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'D'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
Consider the following statements regarding Sensex: It is the benchmark index of the National Stock Exchange (NSE). It represents the performance of the 50 largest and most actively traded stocks listed.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'D'. Can you explain this answer?, a detailed solution for Consider the following statements regarding Sensex: It is the benchmark index of the National Stock Exchange (NSE). It represents the performance of the 50 largest and most actively traded stocks listed.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'D'. Can you explain this answer? has been provided alongside types of Consider the following statements regarding Sensex: It is the benchmark index of the National Stock Exchange (NSE). It represents the performance of the 50 largest and most actively traded stocks listed.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'D'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Consider the following statements regarding Sensex: It is the benchmark index of the National Stock Exchange (NSE). It represents the performance of the 50 largest and most actively traded stocks listed.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'D'. Can you explain this answer? tests, examples and also practice UPSC tests.
|
|
Explore Courses for UPSC exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup