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SUBMITTED BY: ANIRUDDH MAGODRA (ROLL NO. 21) SUBMITTED TO:-PROF. RUTVI SARANG Stock market indices
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, Stock market indices
Help to recognize the broad trends in the market. Used as a bench mark for evaluating the portfolio. Indices function as a report on the general economy. Investor use the indices to allocate funds rationally among stocks. Technical analysis studying the historical performance of indices predict the future movement of stock market. Index funds and futures are formulated with help of the indices. Eg. Fund Managers Usefulness of indices
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. The number of the component stock The composition of stocks. The weight Base year Difference between the indices
PRICE- WEIGHTED AND QUANTITY-WEIGHTED INDEXS, VALUE- WEIGHTED INDEXS. METHODS OF COMputing the stock indexs