Active Trading and Stock Indices -A Correlation Study

Name:         Amit Kumar Tiwari

Title:           Active Trading and Stock Indices -A Correlation Study

Summary

Objective of the Study:

The main objective behind the study is to make analysis of the Correlation coefficient between share prices and its indices. The share price not only affects the share indices but a large number of factors also constitute the share indices. Some of the important factors are discussed below.

1. Dividend paying capacity of the company.
2. Sufficiency of the existing capital.
3. Basis of the value of the assets.
4. Yield of quoted shares in the industry.
5. Number of shareholders.
6. Extent of market for shareholders.
7. Size of the company and many more

The objective of my study is to determine the impact of share prices on the share indices. Also try to study all the important aspects of share prices. The primary objective of my study is to study the correlation coefficient between the share prices and its indices.

Conclusion and Suggestion:

This study has been done to find out the correlation coefficient between the share prices and its indices.  Efforts have also been made to find out all the important aspects of share prices.  B.S.E sensex30 indices have been considered for this study.

Final conclusion relating to share prices:

B.S.E Sensex has today crossed beyond 11000 points. It is the sign of development of economy, good capital market condition, interest of foreign institutional investors to invest in India, sound monetary and fiscal policy of India government etc.

The table given below expresses the important facts of different aspects of share prices, which we point out while making this study.

Table Showing Highest Prices Of Companies
(Rank wise from highest to lowest.)
Name of the Company	Opening Price	High Price	High	High
			Low Price	Closing Price
BAJAJ AUTO	2107	2135.3	2064	2119.7
ITC	2060	2166	1980	1980
GRASIM	1369	1405	1358	1392.5
HDFC	1140	1160	1125	1142
STATE BANK OF INDIA	962	968	945	957.4
HERO HONDA MOTORS	862	870	854	860.4
HDFC BANK	710	737.4	699.25	729.15
MARUTI	629	634.95	618	632.45
TATA MOTORS	528	530.8	513	526.9
ASSOCIATE CEMENT	532.8	536. 30	507.25	523.23
ALLAHABAD BANK	463.8	466.9	459.95	462.15
WIPRO	445.4	449.9	439	445.4
HINDUSTAN LEVER	192.25	193	187	191.95

In this table we can see the following important aspects.

1. Highest opening price during the period of study:  Rs2107
2. Highest high price during the period of study: Rs 2135.3
3. Highest low price during the study: Rs 2064
4. Highest closing price during the study: Rs2119.7

Bajaj Auto share prices are the highest among all the shares. So it is advisable for investors to invest in the share of Info sis. We can provide top rank to the Bajaj Auto share on the basis of share prices. 

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The above article is a summary extract from the dissertation projects of the MBA and BBA students of Skyline College. Skyline, situated in Delhi and Gurgaon (NCR) is a premier institute providing management education specialising in MBA and BBA degrees and specialist courses for travel and tourism as well as mass communication.