2 Replies to “i want to know adout sensex and how it rises and falls?”

  1. SENSEX:
    is the cumulative growth/ fall of the top 30 companies based on their market capitalisation.

    Market Capitalisation: Market Price of the Share X Total Number of Shareholders.

    At the end of the day, top 30 Companies ( based on Market Capitalization) are selected, their stocks movements are studies
    .
    If their cumulative average is UP, the share market indicator goes UP
    If their cumulative average is DOWN, the share market indicator goes DOWN.


  2. A Stock Exchange is the place where investors go to buy/sell their shares. Once a company’s public offering is complete, it gets listed in a stock exchange. After listing it would be available for trading to all investors in the stock exachanges where they are listed. In India we have two major stock exchanges. They are:

    1. The National Stock Exchange (NSE) &
    2. The Bombay Stock Exchanges (BSE)

    Bombay Stock Exchange:

    The BSE is the oldest stock exchange in Asia. It is situated in Dalal Street in Mumbai. It is the third largest stock exchange in south Asia and the tenth largest in the world. BSE has over 5000 companies that are listed in it. The objectives of the BSE are similar to that of the NSE. BSE also uses the latest technologies in the IT field to provide a single place where traders from across the world can buy/sell shares in the Indian share market.

    BSE Index or SENSEX:

    The BSE Index or the Sensex as it is popularly known, is the index of the performance of the 30 largest & most profitable, popular companies listed in the index. Each company that is part of the index has its own weightage in the value of the Index. Since the number of companies is lesser, the index variations are higher when compared to the Nifty index.

    For More details about the 2 major stock exchanges in India visit: http://anandvijayakumar.blogspot.com/2008/10/stock-exchanges-in-india_22.html

    If more people are buying than selling, then the price of the 30 shares that comprise the Sensex index goes up and hence the sensex goes up correspondingly…

    Cheers,
    Anand
    mail me at [email protected] if you need any more details.





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