WHAT DO U NOE ABT SENSEX

India
November 21, 2006 4:27pm CST
I DONT NOE ANY THING ABT THAT...BUT I CHECK IT DAILY IN NEWS...
1 response
@tanaaya (361)
21 Nov 06
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. NOW FOR THE INTERESTING PART..... SENSEX comprises of just 30 stocks derived from 13 different sectors..