Its BSE index now days ranging 13700-13800 may touch or cross 14000 soon . It tells about stock market strength and used by traders for investment in various stocks.
2006-11-23 00:09:33
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answer #1
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answered by bisexualmale s 6
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It is the benchmark index for the Indian stock market. It is the most frequently used indictor while reporting on the state of the market.
The index has just one job: To capture the price movement. So a stock index will reflect the price movements of shares while a bond index captures the manner in which bond prices go up or down.
If the Sensex rises, it indicates the market is doing well. Since stocks are supposed to reflect what companies expect to earn in the future, a rising index indicates investors expect better earnings from companies.
It is, therefore, also a measure of the state of the Indian economy. If Indian companies are expected to do well, obviously the economy should do well too.
In case you are wondering why a stock market index has a provocative term like Sensex, let me tell you it stands for something quite mundane -- The Bombay Stock Exchange Sensitive Index.
What is the Sensex made of?
Thirty stocks. That's right. Just 30 stocks tell you how the market is faring.
Before you throw up your hands in protest, there is something you should know about these 30 stocks.
For one, they are the most actively traded stocks in the market. In fact, they account for half the BSE's market capitalisation (To understand the term market capitalisation, read What's in a share? Money!).
Besides, they represent 13 sectors of the economy and are leaders in their respective industries. Now that sounds fair, doesn't it?
Who selects these 30 stocks?
They are selected by the Index Committee.
This committee consists of all sorts of individuals including academicians, mutual fund managers, finance journalists, independent governing board members and other participants in the financial markets.
How do they select these 30 stocks?
Well, they definitely don't do it on the basis of their individual whims and fancies. Some of the criteria they follow include:
~ The stock should have been traded on each and every trading day (the days on which the stock market works) for the past one year.
~ It should be among the top 150 companies listed by average number of trades (buying or selling of shares) and the average value of the trades (in actual rupee terms) per day over the past one year.
~ The stock must have been listed on the BSE for at least one year.
Does the Sensex have any contemporaries?
In terms of age? No.
The Sensex is the oldest index in the country. It was born in 1986.
In terms of popularity, the Nifty follows close.
2006-11-24 15:45:32
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answer #2
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answered by Anonymous
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It is the benchmark index for the Indian stock market. It is the most frequently used indictor while reporting on the state of the market.
The index has just one job: To capture the price movement. So a stock index will reflect the price movements of shares while a bond index captures the manner in which bond prices go up or down.
If the Sensex rises, it indicates the market is doing well. Since stocks are supposed to reflect what companies expect to earn in the future, a rising index indicates investors expect better earnings from companies.
It is, therefore, also a measure of the state of the Indian economy. If Indian companies are expected to do well, obviously the economy should do well too.
In case you are wondering why a stock market index has a provocative term like Sensex, let me tell you it stands for something quite mundane -- The Bombay Stock Exchange Sensitive Index
2006-11-23 07:51:05
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answer #3
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answered by narender k 2
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SENSEX is a popular name for Bombay Stock Exchange's "SENSitive IndEX". Sensitive index is a list of thiry companies shares listed on BSE. This includes those companies which have highest market capitalisation, large daily trading volumes, widespread holdings and price fairness. An index is an average of companies included in the index. Sensex is also an average of thirty companies share prices. But it is not simple average. It is average of market cap in proportion to total. Given prices and market caps of companies even you can find out what the Sensex can be.
Sensex therefore tells us where most of the stocks are heading to. It gives us a pointer, but never consider it as the only criteria as there are other things also to look for.
2006-11-23 10:10:10
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answer #4
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answered by akash_sky 2
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Sensex is the valuation of 50 high graded value stocks. each stock has given itz point. if u meant how it will be in future. it will be touch 13750 and bounce back to 12400 with in december. As holiday season arrives.I suppose u better book ur profit now, and stay away for 3 months.
2006-11-23 07:53:36
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answer #5
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answered by Nishad 1
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It is a barometer of how the stocks behave.
When the sensex rises, we can infer that the market prices of stocks composing the index has also risen.. but it is not certain that all the stocks composing the index has risen, since various stocks in the index have various weightages.
Go to www.bseindia.com or www.nseindia.com for details.
2006-11-23 08:25:37
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answer #6
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answered by Harish.K 2
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Go to www.capitalmarket.com and go through the web side..
It has all the info about sensex,stocks etc
2006-11-23 08:04:22
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answer #7
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answered by Anonymous
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also see sensex on aptistock freeware for buy sell signal
2006-11-24 02:32:29
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answer #8
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answered by dinu_pawar 5
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Its Female.
Sushmita Sen is a female indeed.
2006-11-23 07:44:01
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answer #9
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answered by Anonymous
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it deal with share market
2006-11-23 07:42:49
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answer #10
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answered by Dev 2
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