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A stock market index is created by selecting similar kinds of stock from a market or exchange and grouping them together. Sensex, which stands for ‘Stock Exchange Sensitive Index’, is the stock market index for the Bombay Stock Exchange. It calculates the movement on BSE.
What really affects the stock market?
Macro-economic factors such as interest rates, inflation, unemployment and economic growth often move stock markets. Stock markets are always rooting for more economic growth, because it usually means more profits for companies, and more profits tend to grow the value of stocks.
Is Sensex and stock market same?
Sensex is derived from Sensitive and Index and is coined by Mr Deepak Mohoni, a stock market analyst. It is an index on the Bombay Stock Exchange or BSE. Sensex comprises 30 companies, and these are chosen based on the liquidity, market capitalisation, revenue, and diversification of the company.
What does rise in Sensex indicate?
A rise in ‘SENSEX’ means. Increase in SENSEX reflects the overall mood of the economy. A rise in it means that investors and FIIs are positive about the growth of Indian economy and expect that it will be sustained in future.
What is difference between Sensex & Nifty?
Nifty 50 constitutes of the top 50 companies that are actively traded in NSE. Sensex comprises the top 30 companies actively traded in BSE. Nifty is a broader market index that covers 24 sectors. Sensex covers 13 sectors.
Should I invest in Sensex?
Don’t trade; invest,” says Vijaykumar of Geojit Financial Services. Existing investors should act as per their financial goals and should not take decisions based on Sensex or Nifty levels. Some experts advise existing investors to book profits at current level if one has no immediate plans to increase fund allocation.
How can we invest in Sensex?
You can start investing directly in the constituents of the SENSEX and the weightage they have in that particular index. This means that you can directly buy the stocks in the quantity which is equivalent to the stock’s weightage. The better option to invest in SENSEX would be to invest in index mutual funds.