Capital Markets

Shweta Kulkarni B.Sc Economics- 3rd year A-32 CAPITAK MARKETS ASSIGNMENT ONE Gdp egression 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 are in percentage. reference work: World bank Sensex surfaceth course| 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 t en years, the BSE Sensex has had a in loyalty 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 inhering depression over the longer period of time. Similarly, simple middle 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 not gain a similar percentage during the year. However, the relations hip may hold received over the longer-term.! To conclude, while we believe that fundamental principle 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 wherefore investors could catch a long-term strategy while commit 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 copious essay, clubhouse it on our website: OrderCustomPaper.com

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