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Asked by Suman Last Modified
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Around 50000 companies are listed on BSE, it comprises of small cap, mid cap and large cap companies. The 30 stocks are selected in a way that it represents the overall market condition. So if SENSEX moves up it means majority of 30 companies are performing well this further implies that majority of companies listed on BSE which are actively traded are performing well. And if SENSEX moves down it implies majority of companies didn't performed well that trading day. The UPs and DOWNs are tracked by Standard & Poor's Hence the name S&P BSE SENSEX
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