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 weight4. Base year

1. PRICE- WEIGHTED AND QUANTITY-WEIGHTED INDEXS,

2. VALUE- WEIGHTED INDEXS.

MAJOR STOCK MARKET INDICES

Indian stock market indices

Weighting Base No. of stock Base year

Economic Times index of Unweighted 72 1984-85

Ordinary share prices

BSE Sensex Market value 30 1978-79

BSE National index Market value 100 1983-84

BSE 200 Market value 200 1989-90

Dollex Market value 200 1989-90

S&P Nifty (NSE- 50) Market value 50 NOV 1995

S&P CNX nifty junior (Nse midcap)

Market value 50 -

S&P CNX-500 Market value 500 1994

CNX Midcap-200 Market value 200 1994

CMIE Market value 72 June 1994

International stock indices

Dow jones industrial Average

Price Weighted 30 1928

Nikkei Dow jones Average Price Weighted 225 1949

S&P Composite Market value 500 1941-42