It is a project report on "An Empirical Study on Sectoral and BSE", which will help the student as well as the investor to get required information for further investment.

1. i
PROJECT REPORT
ON
AN EMPIRICAL STUDY ON
DIFFERENT SECTORAL INDICES
LISTED IN BSE
SUBMITTED IN PARTIAL FULFILLMENT OF THE
REQUIREMENTS FOR THE BACHELOR’S DEGREE IN BUSINESS
ADMINISTRATION
OF
IMS UNISON UNIVERSITY, DEHRADUN
SUPERVISED BY: SUBMITTED BY:
Prof. SANTOSH KUMAR SUBHAM GUPTA
Assistant Professor 14BB192
IMS UNISON UNIVERSITY
DEHRADUN
SCHOOL OF MANAGEMENT, IUU, DEHRADUN
BATCH 2014-17

2. ii
ACKNOWLEDGEMENT
I am using this opportunity to express my gratitude to everyone who supported me throughout
the course of this BBA project.
I express our sincere gratitude to our project guide Prof. Santosh Kumar, Assistant Professor,
IMS, Dehradun for his able guidance, continuous support and cooperation throughout our
project, without which the present work would not have been possible.
I am also thankful to those who have helped me intellectually on presentation of this report,
directly or indirectly.
I would also like to extend my thanks to my members and friends for their support specially.
SUBHAM GUPTA

3. iii
DECLARATION
I hereby declare that the work that is being presented in this Dissertation entitled “AN
EMPIRICAL STUDY ON DIFFERENT SECTORALINDICIES LISTED IN BSE” which
partially submitted in partial fulfillment of the requirements for the bachelor’s degree in business
administrationat IMS UNISON UNIVERSITY, DEHRADUN is an authentic record of mu own
research performed under the supervision of Prof. Santosh Kumar.
I have not submitted the matter embodied in this Dissertation work elsewhere for the award of
any degree or diploma.
SUBHAMGUPTA
14BB192
BBA

4. iv
INTERNAL GUIDE CERTIFICATE
I have the pleasure in certifying that MR. SUBHAM GUPTA is a bonafide student of 6th
semester if the bachelor’s Degree in Business Administration (Batch 2014-17), of IMS Unison
University, Dehradun, Roll no. 14bb192
He has completed his project work entitled “AN EMPIRICAL STUDY ON DIFFERENT
SECTORAL INDICIES LISTED IN BSE” under my guidance.
I certify that this is their original effort and has not copied from any other source. This project
has also not been submitted in any other institute/University for the purpose of award of any
Degree.
This project fulfills the requirement of the curriculum prescribed by this institute for the said
course. I recommend this project work for evaluation and consideration for the award of Degree
to the student.
Signature : ……………………..
Name of Guide: Prof. Santosh Kumar
Designation : Assistant professor
Date :

5. v
EXECUTIVE SUMMARY
The global economic meltdown has influenced all the sectors of the Indian economy. Its impact
is more visible on the capital market and the indices. The indices are falling down and the
markets are following the same trend. The BSE SENSEX has been the worst hit among the
Indian stock market indices. The other sectoral indices are also following the SENSEX until a
revival in the last quarter. Because of the declining trends in the capital markets, the investors are
in a dilemma whether their investments will be safe or not. This is primarily, because of
investments are risky in nature and investors have to consider various factors before investing in
investment avenues. These factors include risk, return, volatility of shares and liquidity. Even
though the situation has stabilized a little bit now, still there is an ambiguity among the investors
about the performance of the indices.
In this backdrop, an attempt was made to study the performance of the sectoral indices in
comparison with SENSEX. The objectives behind that evaluate investment in equity shares of
sectoral indices are selected which is listed BSE. The BSE is a Bombay stock exchange of India
located at Mumbai. There are various indices S&P BSE SENSEX, S&P BSE 100, S&P BSE
200, S&P BSE 500. Another is sectoral indices - S&P BSE Bankex, S&P BSE Auto, S&P BSE
FMCG, S&P BSE Health, S&P BSE IT etc are listed in BSE.
I has taken the data of the last financial year and studied the regression and descriptive statistics
to establish the relationship between the selected sectoral indices and BSE. Five leading sectoral
indices were taken for the analysis, which have a significant impact on the total economic
situation of the country.

6. vi
TABLE OF CONTENTS
Contents Page No.
Cover page i
Acknowledgement ii
Declaration iii
Guide Certificate iv
Executive Summary v
Chapter 1: Introduction 1-27
1.1 Introduction of the study 2-26
1.2 Need of the study 27
Chapter 2: Literature Review and Theoretical Framework 28-37
2.1 Review of Literature 29-35
2.2 Research Gap Identification 36-37
Chapter 3: Research Methodology 38-46
3.1 Research Design 39
3.2 Research Objectives 40
3.3 Hypothesis 40
3.4 Sampling Technique 41
3.5 Data Sources and Collection Method 41
3.6 Data Analysis Procedure and Tools 41
Chapter 4: Data Analysis 47-67
Chapter 5: Findings and Discussion 68-69
Chapter 6: Conclusion, Recommendations and Suggestions 70
Limitation 71
Bibliography 72
References 73

7. vii
LIST OF TABLES
TABLE NO. CONTENTS PAGE NUMBER
1. Milestone of BSE 12-19
2. Broad Market Indices 21
3. Sectoral Indices 21
4. Dollar Linked Indices 21
5. Constituents list of BSE SENSEX 21
6. Index Specification 25
7. Descriptive Statistics Sensex vs Bankex 48
8. Regession Table Sensex vs Bankex 49
9. Descriptive Statistics Sensex vs Auto 52
10. Regession Table Sensex vs Auto 53
11. Descriptive Statistics Sensex vs FMCG 56
12. Regession Table Sensex vs FMCG 57
13. Descriptive Statistics Sensex vs IT 60
14. Regession Table Sensex vs IT 61
15. Descriptive Statistics Sensex vs Health 64
16. Regession Table Sensex vs Health 65

8. viii
LIST OF FIGURE AND GRAGH
Fig and Graph
No.
CONTENTS PAGE NUMBER
Fig No 1. BSE Logo 11
Fig No 2. Research Framework 39
Fig No 3. Residual plot (Bankex) 50
Fig No 4. Normal Probability plot (Bankex) 51
Fig No 5. Residual plot (Auto) 54
Fig No 6. Normal Probability plot (Auto) 55
Fig No 7. Residual plot (FMCG) 58
Fig No 8. Normal Probability plot (FMCG) 59
Fig No 9. Residual plot (IT) 62
Fig No 10. Normal Probability plot (IT) 63
Fig No 11. Residual plot (Health) 66
Fig No 12. Normal Probability plot (Health) 67