Capital Markets

Shweta Kulkarni B.Sc Economics- 3rd year A-32 CAPITAK MARKETS ASSIGNMENT ONE Gdp increase 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 getth class| 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 year s, the BSE Sensex has had a in integrity 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 correlational statistics between the two variables.

Economy goes through cycles of recovery, peak, slowdown and graphic depression over the longer period of time. Similarly, simple pump market places 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 rudiments dictate stock market directions over the longer-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 drop 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 generous essay, clubhouse it on our website: OrderCustomPaper.com

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