GK Questions on Sensex with Answers

Are you curious about the Sensex and want to test your knowledge? Look no further! This article will provide you with a series of GK questions on Sensex to help you learn more about this important stock market index.

Sensex, short for the S&P BSE SENSEX, is a benchmark index that tracks the performance of the top 30 companies listed on the Bombay Stock Exchange (BSE). It is one of the most widely followed and quoted stock market indicators in India.

In this article, you’ll find a variety of GK questions on Sensex, ranging from its history and composition to its significance in the Indian economy. Whether you’re a student, a stock market enthusiast, or simply looking to expand your general knowledge, these questions will help you gain a better understanding of the Sensex and its role in the financial world.

So, let’s dive in and test your knowledge with our Sensex quiz! Prepare to be challenged and enlightened as you explore the fascinating world of the Sensex through these GK questions.

GK Questions on Sensex with Answers

Ques: What is the full form of Sensex?

Ans: Sensex stands for the Bombay Stock Exchange Sensitive Index.

Explanation: It measures the performance of the top 30 companies listed on the Bombay Stock Exchange.

Ques: When was Sensex first introduced?

Ans: Sensex was introduced in 1986.

Explanation: It is one of the oldest stock market indices in India.

Ques: How often is Sensex updated?

Ans: Sensex is updated every 15 seconds during trading hours.

Explanation: This provides real-time updates on the performance of the top 30 companies.

Ques: Who manages Sensex?

Ans: Sensex is managed by the Bombay Stock Exchange (BSE).

Explanation: The BSE is responsible for the maintenance and calculation of the index.

Ques: What is the base year of Sensex?

Ans: The base year of Sensex is 1978-79.

Explanation: The base value was set at 100 points during this period.

Ques: What is the significance of the Sensex?

Ans: Sensex serves as a barometer of the Indian stock market’s overall performance.

Explanation: It reflects the market sentiment and economic conditions in India.

Ques: Which sectors are included in the Sensex?

Ans: Sensex includes sectors like finance, IT, manufacturing, energy, and healthcare.

Explanation: It represents a diversified range of industries.

Ques: What is the method used to calculate Sensex?

Ans: Sensex is calculated using the free-float market capitalization method.

Explanation: This considers the market capitalization of the free-floating shares of the constituent companies.

Ques: Can foreign investors invest in Sensex?

Ans: Yes, foreign investors can invest in Sensex through various investment vehicles like ETFs.

Explanation: This allows international participation in the Indian stock market.

Ques: What was the highest point reached by Sensex?

Ans: The highest point reached by Sensex varies over time; you need to check the latest records for the current highest value.

Explanation: The index continues to break new records as the market grows.

Ques: How does Sensex affect the economy?

Ans: Sensex is a leading indicator of economic trends and investor sentiment.

Explanation: A rising Sensex generally indicates economic growth and investor confidence.

Ques: What is the correlation between Sensex and the global market?

Ans: Sensex often correlates with global market trends.

Explanation: Global economic events can significantly impact Sensex movements.

Ques: How can individual investors track Sensex performance?

Ans: Investors can track Sensex through financial news websites, stock market apps, and BSE’s official site.

Explanation: Real-time data is available for investors to make informed decisions.

Ques: What are Sensex futures?

Ans: Sensex futures are financial contracts where the value is derived from the Sensex index.

Explanation: They allow investors to speculate on the future value of Sensex.

Ques: How is the composition of Sensex determined?

Ans: The composition is based on criteria like market capitalization, liquidity, and trading frequency.

Explanation: BSE reviews and updates the list periodically to ensure it reflects the market accurately.

Ques: What impact does government policy have on Sensex?

Ans: Government policies can have a significant impact on Sensex.

Explanation: Policies related to taxation, regulation, and economic reforms often influence investor sentiment and market performance.

Ques: What is the difference between Sensex and Nifty?

Ans: Sensex tracks 30 companies on the BSE, while Nifty tracks 50 companies on the NSE.

Explanation: Both are benchmark indices but cover different exchanges and a different number of companies.

Ques: What is Sensex’s role in mutual funds?

Ans: Many mutual funds use Sensex as a benchmark to measure their performance.

Explanation: It helps investors compare the returns of mutual funds against the market.

Ques: Can Sensex be traded directly?

Ans: No, Sensex cannot be traded directly.

Explanation: Investors can trade stocks of the companies in the index or invest in funds that track the index.

Ques: What is a Sensex ETF?

Ans: A Sensex ETF (Exchange Traded Fund) is a fund that tracks the performance of the Sensex.

Explanation: It allows investors to invest in the index as a whole.

Ques: How does inflation affect Sensex?

Ans: High inflation can negatively impact Sensex.

Explanation: It reduces the purchasing power of consumers and can lead to lower corporate profits.

Ques: What is the impact of interest rates on Sensex?

Ans: Rising interest rates can lead to a decrease in Sensex.

Explanation: Higher interest rates increase borrowing costs for companies, reducing their profitability.

Ques: How do corporate earnings influence Sensex?

Ans: Strong corporate earnings generally lead to an increase in Sensex.

Explanation: Positive earnings reports boost investor confidence and stock prices.

Ques: What is the role of foreign institutional investors (FIIs) in Sensex?

Ans: FIIs play a significant role in Sensex movements.

Explanation: Their investment decisions can lead to large inflows or outflows of capital, affecting market performance.

Ques: How do political events impact Sensex?

Ans: Political events can have a major impact on Sensex.

Explanation: Elections, policy changes, and political stability influence investor confidence.

Ques: What is the impact of global oil prices on Sensex?

Ans: Fluctuations in global oil prices can affect Sensex.

Explanation: India is a major oil importer, so changes in oil prices impact corporate costs and profitability.

Ques: How do currency exchange rates affect Sensex?

Ans: Changes in currency exchange rates can impact Sensex.

Explanation: A weaker rupee can make imports more expensive and affect companies with significant foreign debt.

Ques: What is the significance of market capitalization in Sensex?

Ans: Market capitalization determines the weightage of a company in Sensex.

Explanation: Larger companies have a bigger impact on the index movement.

Ques: How does investor sentiment influence Sensex?

Ans: Investor sentiment plays a crucial role in Sensex movements.

Explanation: Positive sentiment can drive stock prices up, while negative sentiment can lead to declines.

Ques: What are the common sectors represented in Sensex?

Ans: Common sectors include finance, IT, energy, consumer goods, and healthcare.

Explanation: These sectors provide a balanced representation of the economy.

Ques: How do corporate governance practices affect Sensex companies?

Ans: Good corporate governance practices enhance investor confidence.

Explanation: Companies with strong governance are likely to perform better and attract more investment.

Ques: What is the role of technology in tracking Sensex?

Ans: Technology enables real-time tracking and analysis of Sensex.

Explanation: Investors use various digital platforms and tools to monitor market trends.

Ques: How do quarterly earnings reports impact Sensex?

Ans: Quarterly earnings reports can cause significant volatility in Sensex.

Explanation: Positive or negative earnings surprises can lead to sharp movements in stock prices.

Ques: What is the effect of stock buybacks on Sensex companies?

Ans: Stock buybacks can positively impact stock prices and, consequently, Sensex.

Explanation: Buybacks reduce the number of shares outstanding, often leading to higher share prices.

Ques: How does dividend policy affect Sensex companies?

Ans: Consistent dividend policies can attract long-term investors.

Explanation: Companies that regularly pay dividends are often seen as stable and reliable investments.

Ques: What are the key indicators to watch for Sensex predictions?

Ans: Key indicators include economic data, corporate earnings, global market trends, and political events.

Explanation: These factors help analysts predict future Sensex movements.

Ques: How do mergers and acquisitions impact Sensex companies?

Ans: Mergers and acquisitions can lead to increased stock prices and market optimism.

Explanation: Successful M&A activities often result in stronger and more competitive companies.

Ques: What is the significance of liquidity in Sensex?

Ans: High liquidity ensures that stocks can be easily bought and sold without significantly affecting prices.

Explanation: It is a critical factor for maintaining market stability.

Ques: How does market speculation influence Sensex?

Ans: Market speculation can lead to short-term volatility in Sensex.

Explanation: Speculative trading often results in rapid price movements based on market rumors.

Ques: What is Sensex?

Ans: Sensex, short for the Bombay Stock Exchange Sensitive Index, is a benchmark index of the Bombay Stock Exchange (BSE) in India. It measures the performance of the 30 largest, most liquid, and financially sound companies listed on the BSE.

Explanation: It reflects the overall market sentiment and trends of the Indian stock market.

Ques: What is Sensex today?

Ans: The Sensex value changes throughout the trading day. For the latest value, you can check financial news websites or the BSE website.

Explanation: It provides real-time updates on the performance of the top 30 companies in India.

Ques: What is Sensex and Nifty?

Ans: Sensex is the benchmark index of the BSE, consisting of 30 companies. Nifty, or Nifty 50, is the benchmark index of the National Stock Exchange (NSE), consisting of 50 companies.

Explanation: Both indices are used to gauge the performance of the Indian stock market.

Ques: Why is Sensex down today?

Ans: Sensex can be down due to various factors such as global market trends, economic data, political events, or company-specific news.

Explanation: Market sentiment, economic reports, and global cues often influence the movement of Sensex.

Ques: Why is Sensex falling?

Ans: Sensex may fall due to negative investor sentiment, poor corporate earnings, geopolitical tensions, or economic downturns.

Explanation: Market dynamics, including supply and demand for stocks, impact the Sensex movement.

Ques: Why is Sensex rising today?

Ans: Sensex may rise due to positive economic data, strong corporate earnings, favorable government policies, or positive global market trends.

Explanation: Good news and investor optimism can drive up the Sensex.

Ques: How is Sensex today?

Ans: The current state of Sensex can be found on financial news platforms or the BSE website.

Explanation: It indicates the current performance of the top 30 BSE-listed companies.

Ques: How many companies are in Sensex?

Ans: Sensex consists of 30 companies.

Explanation: These companies are selected based on their market capitalization, liquidity, and industry representation.

Ques: What is BSE Sensex?

Ans: BSE Sensex is the benchmark index of the Bombay Stock Exchange, tracking the top 30 companies listed on the exchange.

Explanation: It serves as an indicator of the overall market performance in India.

Ques: How is Sensex calculated?

Ans: Sensex is calculated using the free-float market capitalization method. It considers the market capitalization of the 30 constituent companies and their free-float shares.

Explanation: This method reflects the value of shares available for trading.

Ques: What is Sensex meaning?

Ans: Sensex is an index that tracks the performance of the 30 largest and most liquid companies on the BSE.

Explanation: It is a barometer of the Indian stock market’s health.

Ques: Why is Sensex falling today?

Ans: Sensex may fall due to adverse economic news, global market trends, poor corporate earnings, or political instability.

Explanation: Negative factors affecting investor sentiment can lead to a decline in the Sensex.

Ques: What is meant by Sensex?

Ans: Sensex is the benchmark index of the BSE, representing the performance of 30 major companies.

Explanation: It is used to gauge the overall direction of the Indian stock market.

Ques: What is Sensex in the share market?

Ans: Sensex is an index that tracks the performance of the top 30 companies listed on the BSE.

Explanation: It is a key indicator of the market’s overall health.

Ques: What is the meaning of Sensex?

Ans: Sensex stands for the Bombay Stock Exchange Sensitive Index.

Explanation: It measures the market performance of 30 prominent BSE-listed companies.

Ques: What is the full form of Sensex?

Ans: The full form of Sensex is the Bombay Stock Exchange Sensitive Index.

Explanation: It is an index representing the top 30 companies on the BSE.

Ques: Why is Sensex falling today?

Ans: Sensex might be falling due to negative economic data, global market downturns, or specific adverse news affecting major companies.

Explanation: Various external and internal factors influence the market sentiment.

Ques: Why is Sensex rising?

Ans: Sensex rises due to positive economic indicators, strong corporate earnings, favorable government policies, and positive global market trends.

Explanation: Investor optimism and positive news drive the market upwards.

Ques: How to invest in Sensex?

Ans: You can invest in Sensex through mutual funds, exchange-traded funds (ETFs), or by buying stocks of the companies included in the index.

Explanation: Various investment instruments allow exposure to the Sensex.

Ques: How to trade in Sensex options?

Ans: To trade in Sensex options, you need a trading account with a broker offering options trading. You can buy or sell options based on the Sensex.

Explanation: Options trading requires understanding of market trends and strategies.

Ques: What is S&P BSE Sensex?

Ans: S&P BSE Sensex is the benchmark index of the Bombay Stock Exchange, measuring the performance of 30 leading companies.

Explanation: It is a widely tracked index in India and globally.

Ques: How many companies are listed in Sensex?

Ans: There are 30 companies listed in Sensex.

Explanation: These companies represent various sectors and are selected based on market capitalization and liquidity.

Ques: How many stocks are in Sensex?

Ans: Sensex comprises 30 stocks.

Explanation: These stocks are from the top-performing companies on the BSE.

Ques: Why is Sensex closed today?

Ans: Sensex may be closed today due to public holidays, weekends, or technical issues at the stock exchange.

Explanation: The BSE has scheduled holidays when trading is closed.

Ques: What is the difference between Sensex and Nifty?

Ans: Sensex tracks 30 companies on the BSE, while Nifty tracks 50 companies on the NSE.

Explanation: Both indices represent the market but have different compositions and are from different exchanges.

Ques: What is Sensex now?

Ans: The current value of Sensex changes throughout the trading day. For the latest value, check financial news websites or the BSE website.

Explanation: It reflects real-time market performance.

Ques: Why did Sensex fall today?

Ans: Sensex might have fallen due to negative economic news, poor corporate earnings, global market trends, or political instability.

Ques: Explanation: Market dynamics and investor sentiment influence the fall.

How many companies are included in the Sensex?

Ans: Sensex includes 30 companies.

Explanation: These companies are selected based on market capitalization and liquidity.

Ques: How many stocks does the Sensex index have?

Ans: The Sensex index consists of 30 stocks.

Explanation: These stocks represent major sectors of the Indian economy.

Ques: What is Sensex and Nifty today?

Ans: The current values of Sensex and Nifty can be found on financial news platforms or the respective stock exchange websites.

Explanation: These values change throughout the trading day.

Ques: What is Sensex in Hindi?

Ans: सेंसेक्स (Sensex) का मतलब बॉम्बे स्टॉक एक्सचेंज का सेंसिटिव इंडेक्स है।

Explanation: यह बीएसई पर सूचीबद्ध 30 प्रमुख कंपनियों के प्रदर्शन को मापता है।

Ques: Why did Sensex crash today?

Ans: Sensex might crash due to significant negative news, economic crises, global market crashes, or political upheavals.

Explanation: Extreme market reactions to adverse conditions can lead to a crash.

Ques: How to buy Sensex?

Ans: You cannot buy Sensex directly, but you can invest in the companies included in the Sensex or through mutual funds and ETFs that track the Sensex.

Explanation: These investment methods provide exposure to the Sensex.

Ques: How to invest in Sensex index?

Ans: Invest in the Sensex index through index mutual funds, ETFs, or by buying shares of the companies included in the Sensex.

Explanation: These options allow you to track the performance of the Sensex.

Ques: What is Sensex and Nifty in Hindi?

Ans: सेंसेक्स (Sensex) बॉम्बे स्टॉक एक्सचेंज का प्रमुख सूचकांक है और निफ्टी (Nifty) नेशनल स्टॉक एक्सचेंज का प्रमुख सूचकांक है।

Explanation: दोनों सूचकांक भारतीय शेयर बाजार के प्रदर्शन को मापते हैं।

GK on SENSEX FAQs

What is the knowledge of Sensex?

The Sensex, or S&P BSE SENSEX, is a stock market index that represents the performance of the top 30 companies listed on the Bombay Stock Exchange (BSE). Understanding the Sensex helps investors gauge market trends and the overall economic health of India.

What is the meaning of Sensex in UPSC?

In the context of the UPSC exam, Sensex refers to the benchmark index of the Bombay Stock Exchange. Questions related to Sensex may appear in the Economic or Current Affairs sections, assessing candidates' knowledge of financial markets.

What is the biggest rise of Sensex?

The biggest single-day rise of the Sensex occurred on April 6, 2020, when it surged by 2,476.46 points, reflecting a significant recovery in the stock market amid the COVID-19 pandemic.

What is the full form of Sensex?

The full form of Sensex is Sensitive Index. It is designed to measure the performance of the stock market and the economy.

Who introduced Sensex?

The Sensex was introduced by the Bombay Stock Exchange (BSE) in 1986. It was created to provide a benchmark for the Indian stock market.

What is Sensex called?

The Sensex is often referred to as the BSE Sensex or simply the Sensitive Index. It is a key indicator of the Indian stock market's performance.

What is the full form of Nifty?

The full form of Nifty is National Stock Exchange Fifty. It represents the top 50 companies listed on the National Stock Exchange (NSE) of India.

What is the Sensex ratio?

The Sensex ratio typically refers to the price-to-earnings (P/E) ratio of the companies included in the Sensex. It provides insights into the valuation of the index relative to its earnings, helping investors assess whether the market is overvalued or undervalued.