UPSC CSE Prelims 2000
A rise in SENSEX indicates an overall increase in the share prices of a select group of companies listed on the Bombay Stock Exchange (BSE). SENSEX, a portmanteau of Sensitive Index, is a market index comprising 30 financially sound and actively traded companies representative of various industrial sectors. Its movement reflects the general sentiment and performance of the Indian stock market.
Options A, B, and D are incorrect because SENSEX does not represent all companies registered with the Bombay Stock Exchange (BSE) or the National Stock Exchange (NSE). It specifically tracks the performance of a carefully chosen basket of 30 companies. Therefore, a rise in SENSEX does not imply a rise in prices of shares of all companies, nor does it pertain to the National Stock Exchange.