Capital Markets

Shweta Kulkarni B.Sc Economics- 3rd year A-32 CAPITAK MARKETS ASSIGNMENT ONE Gdp proceeds 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 argon in percentage. reference work: World bank Sensex taketh grade| 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 y ears, the BSE Sensex has had a in accuracy 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 between the two variables.

Economy goes through cycles of recovery, peak, slowdown and pictorial depression over the longer period of time. Similarly, simple core food markets 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 relationship may hold rece ived over the longer-term. To conclude, w! hile 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 why investors could catch a long-term strategy while investing 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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