Why does the sensex rise or fall? And what does it mean?
544854
Demand and price are proportional to each other. Sensex, share price of the company tell the value/standard/status of the company(in making profits).
25855
I try to pick stocks that are industry leaders that for some reason are having problems at the time.  When everyone one is dumping but the stock has only a slight setback that is when to buy.  I also look to see if the company is buying back it's own stock.  This indicates that they have looked at the market and have decided there are no companies they wish to purchase or do not or can not expand their products or services.  Also if the coampany pays a consistant dividend it usually means it is fairly stable.  With dividends being taxed at a lower rate now (15%), the dividend can mean a stable company.  Again I try to find companies that are in a down cycle but are stable.  Others will choose companies that are up and coming in an industry.  The major problems with them is they are usually cash poor and if there is a major downturn in the market or their industry, they may not have the cash reserves to weather the storm...
815827
Probably.  Let's, from late 2001 go now (about 5 year), the Sensex grew from about 2600 to 13,616 - 11,016 points.  The Dow 30 took 18 years to grow 11,000 points.  When markets have spectacular run ups like that, the corrections are just as spectacular.  Read about the U.S. stock market crash of 1929.  Get the book "Extraordinary Popular Delusions and the Madness of Crowds" by Charles Mackay.  No market can keep such a pace.  At that pace the Sensex should be at 71,211 by 2011 and 372,437 by 2016.  Does that sound normal to you?\n\nI believe the Sensex will have to correct.  When and by how much is anyones guess, but I believe the crash will be as spectacular as the run up over the past 5 years.
1029538
Well, I really dont think so...when sensex from 8000 is bounced above 12000 in short span of time, that time only wise investor must have got a warning....\n\nI did invested lot of money in shares when sensex was at 10000 but i exit all my scrips when it touched 12000 without thinking it will go to 16000.\n\nAt this moment i feel sensex will come down more may be to its original level of 8000.\n\nif you think sensibly and observe market properly i dont think retail investors have to feel cheated...\n\nHope i have answered your question:)
617718
Stock Market (or stock exchange) is a place where stock (or shares as we call in india) are traded between investors at a particular price that is purely determined by the demand and supply of the shares.\n\nFor example, if the demand of the share is greater than the supply, the price of the share will keep rising until the demand is equal to supply. As a result the price of the share goes up. Alternatively, if the supply of the share is more than the demand, the price of the share falls till it equals demand. \n\nNormally one would want to buy the shares of company that are performing good. This would result in a rise in demand of the shares and the price will start rising. The price will rise until the ivestors feel that the share price correctly co relates with the good performace of the company. Similarly one would try and sell shares of a company that is performing poorly and so the supply will rise. The price will continue to fall till investors feel that the price correctly corelates with the performance.\n\nIt is worth noting that any news that has an effect on the performance of the company will be reflected in the price movement of the share. For example, if the government announces that there is an upward revision in the price of petrol, the most likely gainers will be companies like Indian Oil, BPCL, HPCL, ONGC, Reliance etc. Therefore, their stocks (share prices) will start rising. Alternatively if the government announces that there is no revision in the price of petrol even though the price of crude is rising in the international market, the share prices of these companies will be under pressure and will probably fall. \n\nNow a days shares are held in dematerialized or demat (i.e. in electronic form without any paperwork involved) form with a share broker who is registered with the stock exchange. In India, there are two stock exchanges viz - \n\n1) The Bombay Stock Exchange (BSE)\n2) The National Stock Exchange (NSE)\n\nBoth the exchanges are headquarted in Mumbai. A broker can be a member of either of the two or both.\n\nSensex (Sensitive Index) is an index of the most commonly traded 30 stocks on the BSE. Time to time, the BSE allocates weightage to different stocks that reflect their importance in the stock markets. Take an example of two stocks RELAINCE and TATA POWER where both are included in the Sensex. If the stock price of Reliance goes up by Rs 10 and the stock price of TATA POWER falls by Rs 10, does it mean that they will balance each other? The answer is no. This is becuase the weight of the Reliance Stock is much more than Tata Power. In such a case the rise in the Reliance Stock will out weigh the loss in Tata Power's stock and the Sensex will rise (assuming other stocks remain where they are). It is to be noted that the sensex will either move upwards or downwards only the performace of these 30 stocks. Since the general mood of the market is reflected by the movement in the Sensex, it reamins in the news all the time.\n\nPlease note that this explanation is a very simple explanation on the movement in the Indian Stock Market. There may be many other factors that determine the demand and supply of shares.\n\nHope one finds this information useful.
661627
A stock market is how much a companies shares are worth at the time. Low means that they are not selling for a lot, high means that one shares costs more than it did previously. \n\nThese fluctuations are based on events going on in the company and how much people are willing to support them. Often stocks drop when people either see their stocks are worth more and want the money at the time or the company is having problems.\n\nHigh often occurs when a new product has been developed and people want in on the profits that company is gaining.
1006483
Hey !\n\nI do agree with u that the stock market is falling. But dear, how come u expect the consequent rise in anything, isn't it?\n\nExcess of anything is poison, right?\nand that exactly has happened in this case.\nwell, let me tell u that the correction was expected even when the market had risen to the point of 6000, then 8000 and then after at 10000. moreover, let me tell u this was beyond the expectation ie. of 12000 pts. \n\nAnd that is why the market had to fall anyway. there is nothing wrong in that, right?\n\nNow, another issue to ponder is that it is also because of the increase in reservation quota and the corporat honchos didn't like it anymore. so they protested by way of reducing their stake and that too by way of bringing the fluctuations in the economy also.\n\nBut one thing is always for sure that the short term correction is much much better than that of the long term berrish market.
572759
SENSEX is the short form of sensitive index. It is constituted of 30 scrips (companies listed on the stock exchange). They are changed from tiome to time depending on their reponse to the market fluctuations. The 30 Scrips/shares act as an indicator of the entire market. NIFTY is the same are SENSEX but it is the National Fifty Scrips. NIFTY pertains to the NSE and SENSEX to the BSE.\n\nTRADE can be termed as the process of buying or selling shares either for self or on behalf of another person. TRADE can either be a one off transaction or a series of transactions. TRADE may involve buying or selling at a predetermined price i.e placing an order to buy/sell when the price hits Rs. xyz. or Selling or buying on the spot without much consideration to the price.
573935
C u shud never worry abt the future of the share market....but still if u want to knw its will bounce back next week.  moreover people who r in the right company make money irrespective of the status of the market...\n\nThe guy who helps me in BSE & NSE has also started a blog recently called:\n\nhttp://spaces.msn.com/paise-pe-paisa
970736
SENSEX is name for the Bombay Stock Exchange Sensitive Index - an index composed of 30 of the largest and most actively traded stocks on the Bombay Stock Exchange (BSE) representating  various sectors. The set of companies in the index is essentially fixed. These companies account for around one-fifth of the market capitalization of the BSE. \n\nSENSEX is calculated using the "Free-float Market Capitalization" methodology. As per this methodology, the level of index at any point of time reflects the Free-float market value of 30 component stocks relative to a base period. The market capitalization of a company is determined by multiplying the price of its stock by the number of shares issued by the company. This market capitalization is further multiplied by the free-float factor to determine the free-float market capitalization.\n\nThe base period of SENSEX is 1978-79 and the base value is 100 index points.
315650
It is the benchmark index for the Indian stock market.\n\nKind of like the DOW or S&P 500.
675253
y not?????????ppl if start thinking like that sensex would be there..where it is now.if u r disciplined in ur approch & a long term investor..no need to worry at all..Enjoyyyyyy
888798
Share prices rise when there is an increased demand for the shares.  That is people are willing to pay more money for them. If a comany reports that their earnings have increased more than was expected, that generally increases the demand for the shares and prices rise.  \n\nSometimes the price movement is due to technical factors.  If the price of a stock has fallen a significant amount, people might think it is now a bargain and begin wanting to buy it, driving the price higher, even though there is no other apparent reason for the price increase. The opposit is also true.  \n\nThe best way to consistantly make money, is to buy stocks with solid fundamental value that are not overpriced and then to hold on to them and not sell them after the price has risen a few points and not to panic and sell them if the price drops a few points. \n\n The markets tend to run in cycles. And many people tend to buy stocks at the top of the cycle when they are expensive and then to panic and sell them at the bottom of the cycle when they are cheap.  Others tend to buy speculative stocks hoping to make a fast buck, but usually wind up loosing a buck real fast.
740042
easy see the points on chart where share has traded for longer periods. there points r resistances and supports. if share price is below such a point it is acting resistance. if above its a support.
285367
Amazon posted a huge gain one quarter and their stocks took a dive.\n\nMutual funds, hedge funds and inside holders (like the CEO and the board) hold the majority of any stock.  Mutual and hedge funds have their own formulas on what they expect from a company.  That projection is built into the price (aka they buy or sell till the majority feel that it's the price it should be).  Those projections are also called estimates, so when the news talks about beating, matching or falling short of estimates, you know what the news means.\n\nVolume is the other factor.  On low volume days or low volume stocks, there are fewer people deciding if a stock goes up or down.  You shouldn't be concerned with a stock that goes up on high volume and down on low volumes.  That means that vast majority of holders think the stock is going up.  If the volume is high and the stocks are going down, chances the majority of holders are bailing or cashing in.
232790
People don't know what they are doing and don't know what bankruptcy means.  Once there is a Q on the end of a stock, the price is usually under a dollar.  The average Joe has no concept of risk.  They usually think that the lower the price of the stock, the higher the returns.  Just look at how many questions there are on Yahoo Answers about pink sheet stocks.
1016051
Maam,sensex has got a past which shows that it's one of the world's most dynamic markets.After almost 3 weeks of downfall,rather biggest downfall,FII's have changed their view from caution to aggresive buying.MUTUAL FUNDS will continue to pour money as that's their job.Overall after this deep correction fundamentally market is very strong.The way it's gone one way down it's capable of going one way up as well.though some amount of short covering may be seen in middle.But in 1MONTH  time it should return back to 12000