A Comparative Analysis of Sensex Movement & Selected Nifty Index with Special Reference to Investment Prospects
Author : Prashanth Kumar A, Sumathi and Ayush GK
Abstract :
Global economy is witnessing a new direction in post covid-19 recovery. Global real GDP is forecasted to grow by 2.6 percent in 2023, down from 3.3 percent in 2022. We expect further slowing to 2.4 percent in 2024. Economic growth is moderating under the weight of still high inflation and monetary policy tightening. Rather than a global recession, we expect a relatively subdued economic outlook. Growth is generally strongest in emerging Asian economies, and weakest in Europe and the US.
India expecting no major upside in commodity prices and stable growth in domestic economy, Morgan Stanley has predicted that 30-stock BSE Sensex may touch 68,500 levels by end of December 2023. The premium over the historical average, reflects greater confidence in medium-term growth. RBI exits at 6.5% repo and government policy remains supportive via strong infrastructure spending. All these factors has helped the Sensex to Rally in the recent months.
This Paper makes an attempt to identify the Correlation between Sensex and Selected Indices of Nifty such as Nifty Auto, Nifty IT, Nifty Bank, Nifty Oil & Gas. It tries to identify the relationship and reasons for the same. There by helping the investors to finding out contribution of specific sectors in SENSEX Movement and also analyse the sector wise performance of Indices, which help the investors to make more rational investment decisions.
Keywords :
Sensex, nifty, movement, investment, performance
