NSE NIFTY and Its Correlation with Sectorial Indexes
International Journal of Conceptions on Management and Social Sciences, Vol. 2, Issue. 1, March’ 2014
11 Pages Posted: 2 Apr 2018 Last revised: 14 Apr 2021
Date Written: March 22, 2018
The NSE NIFTY Index tracks the behavior of a portfolio of blue chip companies, the largest and most liquid Indian securities. The Index is well studied for bench marking, index funds and index based derivatives. The persuading power of NSE Nifty is very high on other indices especially NSE sectorial indices. Performance of the economy influences industry sector returns differently and changes over time periods. Thus, changing pattern of correlations between sectors is vital for investment purpose. The present study approximates the correlations between NSE Nifty and Industry sectors in India.
Keywords: Index, NSE Nifty, Sectorial Indices and Correlation
JEL Classification: C20, C21, G10
Suggested Citation: Suggested Citation