SUBMITTED BY: ANIRUDDH MAGODRA (ROLL NO. 21) SUBMITTED TO:-PROF. RUTVI SARANG
Stock market indices are the barometer of the stock market. they mirror the stock market behavior. with some 7,000 co’s listed on the BSE. Some of the stock market indices are BSE sensex,BSE-200,NSE-50,BUSINESS LINE 250,
1. Help to recognize the broad trends in the market. 2. Used as a bench mark for evaluating the portfolio. 3. Indices function as a report on the general economy. 4. Investor use the indices to allocate funds rationally among stocks. 5. Technical analysis studying the historical performance of indices predict the future movement of stock market. 6. Index funds and futures are formulated with help of the indices. Eg. Fund Managers
The indices are different from each other to a certain extent. some time the sensex may move up by 100 points but NSE nifty may move up only 40 points. 1. The number of the component stock 2. The composition of stocks. 3. The weight 4. Base year
1. PRICE- WEIGHTED AND QUANTITY-WEIGHTED INDEXS, 2. VALUE- WEIGHTED INDEXS.
MAJOR STOCK MARKET INDICES Indian stock market indicesWeighting BaseNo. of stockBase year Economic Times index ofUnweighted Ordinary share prices BSE SensexMarket value BSE National indexMarket value BSE 200Market value DollexMarket value S&P Nifty (NSE- 50)Market value50NOV 1995 S&P CNX nifty junior (Nse midcap) Market value50- S&P CNX-500Market value CNX Midcap-200Market value CMIEMarket value72June 1994 International stock indices Dow jones industrial AveragePrice Weighted Nikkei Dow jones AveragePrice Weighted S&P CompositeMarket value