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SENSEX

What is Stock Market Index? Types of Stock market indices

What is Stock Market Index?

Stock Market Index

A Stock market index is mainly an indicator which indicates the performance of the stocks whether most of them have gone up or most of them have gone down. In other words, we can say that Stock market index not only gives a consolidated view about stock market performance but also indicates the overall general economy of the country. If the stock market indices are going up, it indicates that the investors have positive sentiment in the growth story of the economy. For example, the Sensex is an indicator of all the major companies of BSE (Bombay Stock Exchange), where as NIFTY is an indicator of all major companies of NSE (National Stock Exchange). Continue reading

SENSEX 30 Stock List or BSE 30 Stock List

SENSEX 30 Stock List or BSE 30 Stock List

BSE 30

Here is the list of all companies that have been included in SENSEX 30 stock list or BSE 30 stock list since its introduction in 1986. The base value of sensex is 100 while the base year is taken as 1978-79. However many companies included in base calculation in 1979 were replaced by new companies. The latest list of sensex 30 or BSE 30 stocks as the date mentioned above is appended below: Continue reading

What is SLR (Statutory Liquidity Ratio)? How does SLR regulate money supply?

What is SLR (Statutory Liquidity Ratio)?

slr

SLR (Statutory Liquidity Ratio) is ratio of total bank deposits or a portion of the banks’ NDTL (Net Demand and Time Liabilities), that the banks are required to invest in assets specified by the Central Bank of the country (in India, RBI is the central bank). In other words, we can say under SLR, the banks are required to invest a certain percentage of the total bank deposits in gold, and government bonds and securities. RBI (Reserve Bank of India) uses SLR as an instrument to strengthen banks to meet any unexpected demand from depositors at short notice by selling the bonds.

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What is CRR (Cash Reserve Ratio)? How does CRR regulate money supply?

What is CRR (Cash Reserve Ratio)?

crr

CRR (Cash Reserve Ratio) is a ratio of total bank deposits or a portion of the banks’ NDTL (Net Demand and Time Liabilities) that the banks are required to maintain with the Central Bank of the country (in India, RBI is the central bank). In other words, we can say under CRR, the banks are required to keep and maintain a certain percentage of the total bank deposits in the current account maintained with RBI (Reserve Bank of India). RBI uses CRR as an instrument either to increase the money supply or to drain out the excessive money from the system.

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