Capital Markets

Shweta Kulkarni B.Sc Economics- 3rd year A-32 CAPITAK MARKETS ASSIGNMENT ONE Gdp proceeds stray (Annual %) Country| 2000| 2001| 2002| 2003| 2004| 2005| 2006| 2007| 2008| 2009| 2010| 2011| India| 3.98| 4.94| 3.91| 7.94| 7.85| 9.28| 9.26| 9.80| 3.89| 8.24| 9.55| 6.86| Inflation| 4.02| 3.77| 4.31| 3.81| 3.77| 4.25| 6.15| 6.37| 8.35| 10.88| 11.99| 8.86| The above figures ar in percentage. reference work: World bank Sensex twistth division| 2000| 2001| 2002| 2003| 2004| 2005| 2006| 2007| 2008| 2009| 2010| 2011| Closing vaues| 3,972.12| 3,262.33| 3,377.28| 5,838.96| 6,602.69| 9,397.93| 13,786.91| 20,286.99| 9,647.31| 17,464.81| 20,509.09| 15,454.92| % growth| -20.64| -17.87| 3.52| 72.88| 13.08| 42.33| 46.70| 47.15| -52.45| 81.03| 17.43| -24.64| Observation: 1. even so as the real gross domestic product growth has been growing at an change magnitude rate overall on an annual priming in the last ten years, the BSE Sensex has had a in legality volatile trend. On a year-on-year basis, there seems to be no sync at all between these two factors. 2. However, in the long term, there whitethorn be a correlation between the two variables.

Economy goes through cycles of recovery, peak, slowdown and infixed depression over the longer period of time. Similarly, simple spirit foodstuffs also extradite cycles, depending on how the economy is performing. Therefore, even if Indias GDP grows at 9% in one year, the Sensex may non gain a similar percentage during the year. However, the relationship may hold received over the longer-term. To conclude, while we believe that rudiment s dictate stock market directions over the l! onger-term, there are pitfalls in such(prenominal) assumptions, which one has to acknowledge. This is perhaps one of the key reasons why investors could catch a long-term strategy while investment funds in stocks. Assuming that a company X is likely to grow remuneration at a certain rate, the stock market may take time...If you want to get a all-encompassing essay, clubhouse it on our website: OrderEssay.net

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