Q33 · UPPSC Prelims 2021 · Set D · General Studies

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'SENSEX' is the popular Index of Bombay Stock Exchange (BSE). It is measured on the basis of how many blue chip companies listed in BSE?

A 20
B 30
C 25
D 10

Correct answer: (b) 30

Explanation

  1. A

    20

    (a) 20. Twenty was an older, narrower basket; today’s Sensex is not computed on twenty scrips.

  2. B

    30

    (b) 30. The BSE Sensex is a free-float market-cap index of thirty large, liquid blue-chip companies listed on the Bombay Stock Exchange. That thirty-stock basket is the official key.

  3. C

    25

    (c) 25. Twenty-five is not the Sensex universe; it is a distractor between twenty and thirty.

  4. D

    10

    (d) 10. Ten names cannot represent the Sensex; a ten-stock gauge would be a different product.

Summary. Official key is (b) 30. Sensex, launched in 1986, tracks thirty blue chips on the Bombay Stock Exchange. It is not a twenty-, twenty-five- or ten-stock index. Nifty Fifty of the National Stock Exchange is a separate fifty-stock gauge and must not be confused with Sensex.