Your SlideShare is downloading. ×
  • Like
Stat prsentation
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×

Now you can save presentations on your phone or tablet

Available for both IPhone and Android

Text the download link to your phone

Standard text messaging rates apply

Stat prsentation

  • 139 views
Published

 

Published in Business , Economy & Finance
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
    Be the first to like this
No Downloads

Views

Total Views
139
On SlideShare
0
From Embeds
0
Number of Embeds
0

Actions

Shares
Downloads
5
Comments
0
Likes
0

Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide

Transcript

  • 1. ACKNOWLEDGEMENT
  • 2. INDEX ACKNOWLEDGEMENT…………………………………………………………………1 INDEX………………………………………………………………………………………….2 WHAT IS INFLATION? IFLATION IN INDIA BOMBAY STOCK EXCHANGE CORRELATION DETERMINING THE CORRELATION
  • 3. WHAT IS INFLATION? In economics, inflation is a rise in the general level of prices of goods and services in an economy over a period of time. When the general price level rises, each unit of currency buys fewer goods and services. Consequently, inflation reflects a reduction in the purchasing power per unit of money – a loss of real value in the medium of exchange and unit of account within the economy. A chief measure of price inflation is the inflation rate, the annualized percentage change in a general price index(normally the consumer price index) over time.
  • 4. IN INDIA In India the rate of inflation measured by the Wholesale Price Index(WPI). The purpose of the WPI is to monitor price movements that reflect supply and demand in industry, manufacturing and construction. This helps in analyzing both macroeconomic and microeconomic conditions. Inflation is based on Wholesale Price Index.  WPI tracks changes in average price of goods traded in wholesale market. This is the most common measure of inflation and is extensively used for policy purposes. It considers three main product groups - primary articles, fuel and power and manufactured goods. Within each group there are subgroups and within the subgroup, smaller groups and specific items. This index, however, does not cover non-commodity producing sectors, e.g. services and non-tradable commodities. WPI is computed on all-India basis.  For example in India about 435 items were used for calculating the WPI in base year 1993- 94 while the advanced base year 2004-05 and which has now been changed to 2010-2011; uses 676 items. The indicator tracks the price movement of each commodity individually. Based on this individual movement, the WPI is determined through the averaging principle.
  • 5.  The S&P BSE SENSEX (S&P Bombay Stock Exchange Sensitive Index), also-called the BSE 30 or simply the SENSEX, is a free-float market capitalization-weighted stock market index of 30 well-established and financially sound companies listed on BSE Ltd. The 30 component companies which are some of the largest and most actively traded stocks, are representative of various industrial sectors of the Indian economy. Published since 1 January 1986, the S&P BSE SENSEX is regarded as the pulse of the domestic stock markets in India. The base value of the S&P BSE SENSEX is taken as 100 on 1 April 1979, and its base year as 1978–79.
  • 6. Determining the Correlation 0 2 4 6 8 10 12 14 1998 2000 2002 2004 2006 2008 2010 2012 Y-Values Inflation Rate in India From 1999-2011.
  • 7. BSE SENSEX CHART FROM 2006-2011.