A short PPT on BSE and its sectoral indices.

1. By:- Subham Gupta
Arjun Kumar

2. Introduction:
STOCK MARKET: Stock market, equity market or share market is the
aggregation of buyers and sellers of stocks, which represent ownership claims
on businesses; these may include securities listed on a public stock
exchange as well as those only traded privately. Examples of the latter include
shares of private companies which are sold to investors through equity crowd
funding platforms.

3. Stock Exchange: An organized and regulated financial market where
securities are bought and sold at prices governed by the forces of demand
and supply. Stock exchanges impose stringent rules, listing requirements,
and statutory requirements that are binding on all listed and trading parties.

4. Bombay Stock Exchange
• The Bombay Stock Exchange (BSE) is an Indian stock exchange located
at Dalal Street, Kala Ghoda, Mumbai, Maharashtra, India.
• Established in 1875, the BSE is Asia’s first stock exchange.
• Founded By: Mr. Premchand Roychand
• More than 5500 companies are publicly listed on the BSE.
• BSE become India’s 1st listed stock exchange.

5. Sensex
• It is an index of leading 30 stocks representing 12 major sectors.
• SENSEX is India's first stock market index that enjoys a specific identity
and is tracked worldwide.
• The SENSEX is constructed on a 'free-float' methodology, and is sensitive
to market sentiments and market realities.
• Base value of Sensex is 100 (april 1,1979).
• Base year (1978-79)

6. Main INDICES OF BSE
 Broad Market Indices
1.Sensex 2. Bse100
3. Bse 200 4. Bse500
5. Bse Mid Cap 6.Bse Small Cap
 Sectoral Indices:
1. Bse Auto 2.Bankex
3.Capital Goods 4.Health
5.FMCG 6. IT
 Dollar Linked Indices:
1. Dollex30
2. Dollex100
3. Dollex 200

7. Sectoral Index

8. Sectoral Indices
• BSE AUTO: It reflect the behavior and performance of the Automobiles sector which includes
manufacturers of cars & motorcycles, heavy vehicles, auto ancillaries, tyres, etc. The BSE Auto
Index comprises of 15 stocks that are listed on the BSE.
• BSE BANKEX: BSE Bankex Index is an index comprised of the most liquid and large
capitalized Indian Banking stocks. The index has 12 stocks from the banking sector which trade
on the BSE.
• BSE FMCG: The BSE FMCG Index comprises of maximum of 15 companies who manufacture
FMCG products which are listed on the BSE.
• BSE IT: The BSE IT index is comprises of maximum of 10 companies , IISL has developed the
BSE IT sector index.
• BSE HEALTH: The S&P BSE healthcare is designed to provide investors with a benchmark
reflecting companies included in the S&P BSE. All cap that are classified as members of the
health care sector.

9. OBJECTIVE OF STUDY
• To take on overview of the BSE and to enclose the best investment avenue
available in exchange.
• To know various sectoral indices available in BSE and make investment in
growing industries.
• To calculate risk and return from five sectoral indices.
• To know the relationship among sectoral indices with the Sensex.

10. Research Methodology
• Data has been taken from secondary sources through internet, books and
magazine.
• Descriptive statistics is used to analyze the data.
• Regression tool is also used to analyzing the data.
• Sampling Period 10 years (1-1-2006 to 31-12-2016)

11. Regression Coefficient
• Regression is a statistical measure used in finance, investing and other
disciplines that attempts to determine the strength of the relationship
between one dependent variable and a series of other changing variables.
• Objective of Regression is to study the nature of relationship between the
variables.

13. Table showing regression

14. Finding
• We can find Mean, Median, Mode in Descriptive statistics, are not equal.
So, it is asymmetrical distribution. As the data is taken from real time
market.
• By observing the trends in the Regression, we can conclude that Bankex,
Auto and Health indices are showing a high range of positive Regression
with SENSEX. However, IT and FMCG indices are showing low range of
positive regression. Thus Bankex, Auto and Health indices are impacting
more than IT and FMCG indices. So, the investors can follow the leading
index for their investments in various sectors.

15. Conclusion
• According to this study, Banking and Automobile sector are best for the
investment with the objective of earning huge return.
• Person new entrants in market can make investment in the growing
industry in order to get adequate return on their investment. Rather than
investing in others (saving a/c, fixed deposit, LIC, etc.)
• Person or the investor with limited time may use this data in order to
make best investment in BSE.

16. Reference
1. http://www.bseindia.com/indices/IndexArchiveData.aspx
2. https://in.finance.yahoo.com/intlindices?bypass=true&e=asia
3. http://www.asiaindex.co.in/indices/equity/sp-bse- sensex
4. https://scholar.google.co.in/scholar?hl=en&q=sectoral+indices&btnG
5. https://www.nseindia.com/live_market/dynaContent/live_watch/live_index_watch.htm
6. https://www.bloomberg.com/markets/stocks