please tell something about sensex fluctuation...?

Question

it is very imp. so plz give me revlent answer

Answer 1

sensex consists of certain number of stocks. each stock is given the weightage in percentage. the fluctuation in the prices of those shares which constitutes sensex moves the sensex up or down. this up and down movement is called fluctuation.

Answer 2

In highly volatile trading, the Bombay Stock Exchange benchmark Sensex made a smart recovery from the early sharp losses on good low-level buying but only to close 21.31 points lower at 10129.70 as select bluechip counters fell towards the end on fresh selling.

The market witnessed a wide fluctuation as the 30-share sensitive index (Sensex) opened weak at 10067.55 and after swinging erratically between 10204.66 and 9909.76, closed at 10129.70 against 10151.01.

The early setback in prices was due to frantic selling following global meltdown on fears that the U.S. Federal Reserve would raise the interest rates.

Later, a smart rise in index-heavyweights such as Reliance Industries, Bajaj Auto, BHEL and TCS, helped the index regain part of the early losses.

The volatility was also attributed to the approaching end of account for derivatives contract on June 29, brokers said.

Meanwhile, on the National Stock Exchange, the S&P CNX Nifty, after moving between 3003.65 and 2909.60, closed 1.35 points lower at 2981.10.

Answer 3

There is a long history to the US markets, hence it is better to answer it from a US perspective. The same applies to India also for the BSE.

Major long-run swings in the U.S. stock market over the past century are broadly consistent with a model driven by changes in current and expected future dividends in which investors must estimate the time-varying long-run dividend growth rate. Such an estimated long-run growth rate resembles a long distributed lag on past dividend growth and is highly correlated with the level of dividends. Prices, therefore, respond more than proportionately to long-run movements in dividends. The time-varying component of dividend growth need not be detectable in the dividend data for it to have large effects on stock prices.

The addition info is the BSE will continue to fluctuate heavily with the budgets around the corner that change investments, taxes, laws governing the companies, and FIIs.

GL

KKP

Answer 4

When people are buying sensex goes up and when they are selling it goes down.