How many companies make up the BSE SENSEX?
- A.20
- B.30
- C.50
- D.100
Correct answer
Explanation
The correct answer is B, 30. The SENSEX, short for Sensitive Index, is composed of 30 large, well established and actively traded companies listed on the Bombay Stock Exchange, and since 2003 it has been calculated on the free-float market capitalisation method, which counts only the shares actually available for trading. Option A is wrong because no Indian benchmark index has twenty constituents. Option C is wrong because fifty is the number of companies in the NIFTY 50 of the National Stock Exchange, and the swapping of thirty and fifty between the two indices is the commonest error in this topic. Option D is wrong because a hundred is the number in indices such as the FTSE 100 of London and the KSE 100 of Pakistan, not in the Sensex. Note also that the Dow Jones Industrial Average, like the Sensex, has 30 companies.
Read the full article: Stock Exchanges and Indices of the World: Sensex to Nikkei
Practice Questions
View allWhich is the oldest stock exchange in Asia?
- A.National Stock Exchange
- B.Bombay Stock Exchange
- C.Tokyo Stock Exchange
- D.Hong Kong Stock Exchange
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It was established in 1875 as the Native Share and Stock Brokers Association and functions from Dalal Street in Mumbai, which makes it the oldest stock exchange in Asia; it was also the first exchange in India to receive permanent recognition from the Government under the Securities Contracts (Regulation) Act…
Read the full explanation →What is the base year of the BSE SENSEX, and its base value?
- A.1978-79, base value 100
- B.1980-81, base value 100
- C.1991-92, base value 1000
- D.1995-96, base value 1000
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The Sensex was launched in 1986 and its series was worked back to the base year 1978-79, for which the index value is taken as 100, so that a Sensex reading shows how many times the market has grown since that base.
Read the full explanation →The Dow Jones Industrial Average is the benchmark index of the stock market of which country?
- A.United Kingdom
- B.United States
- C.Germany
- D.Japan
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The Dow Jones Industrial Average tracks 30 large American companies and is quoted for the New York Stock Exchange; it was created by Charles Dow in 1896 and is the oldest index of share prices still in use, the broader American benchmark being the S&P 500 and the technology-heavy one…
Read the full explanation →Nikkei 225 is the share price index of which country?
- A.China
- B.South Korea
- C.Japan
- D.Singapore
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The Nikkei 225 is the benchmark index of the Tokyo Stock Exchange and is named after Nihon Keizai Shimbun, the newspaper that has compiled it since the 1950s; it covers 225 leading Japanese companies.
Read the full explanation →The FTSE 100, popularly called the Footsie, is the index of which stock exchange?
- A.London Stock Exchange
- B.Euronext Paris
- C.SIX Swiss Exchange
- D.Toronto Stock Exchange
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The FTSE 100 began in 1984 and records the share prices of the hundred largest companies by market capitalisation listed in London; the name comes from the Financial Times and the Stock Exchange, which set up the index jointly, and it is read as the Footsie.
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