Question

Gold mark assignment

write two page about...

iii. Stock Market performance, Observation & critical analysis

Answer 1

Stock Market Performance:-

SENSEX (BSE30) is a major stock market index which tracks the performance of 30 major companies listed on Bombay Stock Exchange. The companies are chosen based on the liquidity, trading volume and industry representation.

The SENSEX increased 307 points or 0.74% since the beginning of 2020, according to trading on a contract for difference that tracks this benchmark index from India.

The Index is determined on daily basis by taking into consideration the current market value divided by base market capital and then multiplied by the Base Index Value of 1000. Both Sensex and Nifty are stock market index used to deteremine the value and strength of stock market.

NIFTY 50 stands for National Stock Exchange Fifty which represent weighted average of 50 Indian Company stocks in 13 sectors and is one of the two main stock indices used in India the other is BSE Sensex.

There are 23 SEBI approved Stock Exchanges in the country. Stock market is managed by Securities and Exchange Board of India.

There seems to be a change in wind in the market. Since the start of 2020, the uptread in small cap stocks has accelerated.

India Sensitive 30 (SENSEX) closed at 41,253.7 points in Dec 2019, compared with 40,793.8 points at the previous month end. India's Equity Market Index Month End : BSE Sensitive 30 date is updated monthly, available from Jan 1990 to Dec 2019, with an average number of 6,363.6 points. The data reached an all-time high of 41,253.7 points in DEC 2019 and a record low of 676.2 points in FEB 1990.

In the latest reports, SENSEX recorded a daily P/E ratio of 26.0 in Dec 2019.

SENSEX has gained over 13% in the past two months and repeatedly set record highs after the government announced several measures, including a corporate tax cut.