Q. With reference to Stock Market Indices in India, consider the following statements:
1.A Stock Market Index reflects the overall performance of a segment of the market and is usually based on a weighted group of selected stocks.
2.The BSE Sensex represents the price movements of the top 50 companies listed on the Bombay Stock Exchange.
3.The Nifty Junior index includes companies ranked immediately after the Nifty 50 based on market performance.
Which of the statements given above is/are correct?
Quarterly-SFG-Jan-to-March
Red Book

[A] 1 and 2 only

[B] 1 and 3 only

[C] 2 and 3 only

[D] 1, 2 and 3

Answer: B
Notes:

Explanation:

  • A Stock Market Index measures market performance by tracking a weighted group of stocks, often selected based on criteria like market capitalization and sectoral representation.
  • The BSE Sensex includes the top 30 companies, not 50, listed on the Bombay Stock Exchange.
  • The Nifty Junior (also known as Nifty Next 50) includes the next top 50 companies after the Nifty 50, thus serving as an extended benchmark.

Source- 11th NCERT: Economics: Indian Economic Development and TMH Indian Economy by Ramesh Singh

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