A rise in ‘SENSEX’ means: 

(a) a rise in prices of shares of all companies registered with Bombay Stock Exchange 

(b) a rise in prices of shares of all companies registered with National Stock Exchange 

(c) an overall rise in prices of shares of group up companies registered with Bombay Stock Exchange 

(d) a rise in prices of shares of all companies belonging to a group of companies registered with Bombay Stock Exchange


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(c) 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. But a rise in SENSEX doesn’t necessarily mean that the price your stocks also moves up. It only changes in share prices due to short run factors. It does not reflect the actual economic conditions.

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