Question : Statement 1: Sensex and Nifty are examples of stock market indices.
Statement 2: Stock market indices measure the performance of individual stocks.
Option 1: Statement 1 is true, and statement 2 is true.
Option 2: Statement 1 is true, but statement 2 is false.
Option 3: Statement 1 is false, and statement 2 is true.
Option 4: Statement 1 is false, and statement 2 is false.
Correct Answer: Statement 1 is true, and statement 2 is true.
Solution : The correct answer is (a) Statement 1 is true, and statement 2 is true.
Statement 1 is true. Sensex (S&P BSE Sensex) and Nifty (Nifty 50) are indeed examples of stock market indices in India. They represent a basket of selected stocks and reflect the overall performance of the stock market.
Statement 2 is also true. Stock market indices are calculated based on the performance of a group of individual stocks that are selected according to certain criteria such as market capitalization, industry sector, or other factors. The indices give an indication of how these selected stocks are performing collectively, providing insights into the overall market trends and sentiments.
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