UPSC Prelims 2000·GS1·economy·basic concepts

The upper part of the graph is a hypothetical movement in the BSE Sensex over a few months and the lower part is the fluctuation in the average value of automobile shares in the same period (actual values not given). Which one of the following inferences can be drawn from the graphs?

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Last updated 23 May 2026, 3:31 pm IST
  1. AThe automobile share market has been as unstable as BSE Sensex in that period
  2. BThere has been a major political change in June/July
  3. CAutomobile shares have shown a steady improvement in price, unaffected by large fluctuations in BSE SensexCorrect
  4. DNone of the above

Explanation

The correct answer is C because of the visual relationship between the two graphs. The upper graph representing the BSE Sensex shows high volatility with sharp peaks and deep valleys, indicating a very unstable market period. In contrast, the lower graph representing automobile shares shows a consistent and smooth upward trend during the same timeframe. The automobile line does not mirror the dramatic spikes or drops seen in the Sensex. This indicates that the value of automobile shares remained resilient and continued to improve steadily, even when the broader market index was experiencing extreme fluctuations. Therefore, inference C is the only logical conclusion that can be drawn directly from the visual data provided.
economy: The upper part of the graph is a hypothetical movement in the BSE Sensex over a few months and the lower part is the flu

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