Capital Markets

Shweta Kulkarni B.Sc Economics- 3rd year A-32 CAPITAK MARKETS ASSIGNMENT ONE Gdp process 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 atomic number 18 in percentage. reference work: World bank Sensex pay backth stratum| 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 years, the BSE Sensex has had a in the true 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 correlation coefficient between the two variables. Economy goes through cycles of recovery, peak, slowdown and innate depression over the longer period of time. Similarly, simple inwardness commercializes 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 wherefore investors could catch a long-term strategy while expend in stocks. Assuming that a company X is likely to grow remuner! ation at a certain rate, the stock market may take time...If you want to get a adequate essay, clubhouse it on our website: OrderCustomPaper.com

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