This project report is prepared at Shout Gujarat shares & share-brokers ltd.

at surat on AN IMPACT OF MOVEMENT OF JAPANESE STOCK

EXCHANGE (NIKKEI) ON INDIAN STOCK EXCHANGE (SENSEX &
NIFTY). To find out.
This project focused on main objective of the An impact of movement of
Japanese stock exchange (Nikkei) on Indian stock exchange ( Sensex & Nifty ).
I have conducted research on An impact of movement of Japan stock exchange on
Indian stock exchange using CAUSAL RESEARCH in whole project.
In project report simple size uses are as below.
Weekly average of NIKKEI of last 5years. i.e. 2008 to 2012
Weekly average of SENSEX of last 5years. i.e. 2008 to 2012
Weekly average of NIFTY of last 5years. i.e. 2008 to 2012
The data was collected through books and websites. Most of the data are secondary
data which are collect for the websites.
In project report, I tried to find out what will be the impact of Nikkei on sensex and
nifty. To find the data analysis two statistical tools are use to find the impact.
Which statistical tools are as summation, average and correlation.
In data analysis to find that the Japanese stock exchange & Indian stock exchange
are negatively co-related with each other.
At the end of the project report me advice to all investor to invest in Japanese and
Indian stock market. If the Japanese stock exchange (Nikkei) is decrease then the
more invest to Indian stock market & via-s-versa.

SECURITIES & EXCHANGE BOARD OF INDIA

SEBI Bhavan, Mumbai headquarters

Agency overview
Formed : 12 April 1992
Jurisdiction : Government of India
Headquarters : Mumbai, Maharashtra
Employees : 525 (2009)
Agency executive : Mr U. K. Sinha, Chairman
Website : www.sebi.gov.in
The Securities and Exchange Board of India (frequently abbreviated SEBI) is
the regulator for the securities market in India. It was established on 12 April 1992
through the SEBI Act, 1992.
It was officially established by The Government of India in the year of 1992 with
SEBI Act 1992 being passed by the Indian Parliament. SEBI is having it's
Headquarter at the business district of Bandra Kurla Complex in Mumbai, and has
Northern,

Eastern,

Southern

and

Western

Regional

Offices

in New

Delhi, Kolkata, Chennai and Ahmedabad respectively.

SEBI was a non statutory body without any statutory power. However in the year
of 1995, the SEBI was given additional statutory power by the Government of
2

India through an amendment to the Securities and Exchange Board of India Act
1992. In April, 1998 the SEBI was constituted as the regulator of capital markets in
India under a resolution of the Government of India.
The SEBI is managed by its members, which consists of following:
a) The chairman who is nominated by Union Government of India.
b) Two members, i.e. Officers from Union Finance Ministry.
c) One member from The Reserve Bank of India.
d) The remaining 5 members are nominated by Union Government of India, out of
them at least 3 shall be whole-time members.
The office of SEBI is situated at SEBI Bhavan, Bandra Kurla Complex, Bandra
East, Mumbai- 400051, with its regional offices at Kolkata, Delhi,Chennai &
Ahmadabad. It has recently opened local offices at Jaipur and Bangalore and is
planning to open offices at Guwahati, Bhubaneshwar, Patna, Kochi and
Chandigarh in Financial Year 2013 - 2014.

FUNCTION & RESPONSIBILITIES :

SEBI has to be responsive to the needs of three groups, which constitute the
market:

the issuers of securities

the investors

the market intermediaries.

SEBI has three functions rolled into one body: quasi-legislative, quasi-judicial and
quasi-executive. It drafts regulations in its legislative capacity, it conducts
investigation and enforcement action in its executive function and it passes rulings
and orders in its judicial capacity. Though this makes it very powerful, there is an
appeal process to create accountability. There is a Securities Appellate Tribunal
which is a three-member tribunal and is presently headed by a former Chief Justice

of a High court - Mr. Justice NK Sodhi. A second appeal lies directly to

the Supreme Court.

HISTORY & EVOLUTION OF STOCK EXCHANGE IN

INDIA
Introduction :
first know what are :
a) Stock Markets,
b) Stock exchanges.

a) STOCK MARKETS: Stock Market is a market where the trading of

company stock, both listed securities and unlisted takes place. It is different from
stock exchange because it includes all the national stock exchanges of the country.
For example, we use the term, "the stock market was up today" or "the stock
market bubble."

b) STOCK EXCHANGES: Stock Exchanges are an organized marketplace,

either corporation or mutual organization, where members of the organization
gather to trade company stocks or other securities. The members may act either as
agents for their customers, or as principals for their own accounts. Stock exchanges
also facilitates for the issue and redemption of securities and other financial
instruments including the payment of income and dividends. The record keeping is
central but trade is linked to such physical place because modern markets are
computerized. The trade on an exchange is only by members and stock broker do
have a seat on the exchange.
A stock exchange is a form of exchange which provides services for stock
brokers and traders to trade stocks, bonds, and other securities. Stock exchanges
also provide facilities for issue and redemption of securities and other financial
instruments, and capital events including the payment of income and dividends.
Securities traded on a stock exchange include shares issued by companies, unit
trusts, derivatives, pooled investment products and bonds.

To be able to trade a security on a certain stock exchange, it must be listed there.

Usually, there is a central location at least for record keeping, but trade is
increasingly less linked to such a physical place, as modern markets are electronic
networks, which gives them advantages of increased speed and reduced cost of
transactions. Trade on an exchange is by members only.
The initial offering of stocks and bonds to investors is by definition done in
the primary market and subsequent trading is done in the secondary market. A
stock exchange is often the most important component of a stock market. Supply
and demand in stock markets are driven by various factors that, as in all free
markets, affect the price of stocks (see stock valuation).

ROLE OF STOCK EXCHANGE

1. NEW YORK STOCK EXCHANGE

To be listed on the New York Stock Exchange (NYSE) a company must have
issued at least a million shares of stock worth $100 million and must have earned
more than $10 million over the last three years
2. LONDON STOCK EXCHANGE

The main market of the London Stock Exchange has requirements for a minimum
market capitalization (700,000), three years of audited financial statements,

minimum public float (25 per cent) and sufficient working capital for at least 12
months from the date of listing.
3.
4.
5.
6.
7.

TOKYO STOCK EXCHANGE

HONG KONG STOCK EXCHANGE
SHANGHAI STOCK EXCHANGE
TORONTO STOCK EXCHANGE
BOMBAY STOCK EXCHANGE

Bombay Stock Exchange (BSE) has requirements for a minimum market

capitalization

of 25 crore (US$4.55

million) and

minimum

public

float

equivalent to 10 crore (US$1.82 million).

8. SAO PAULO STOCK EXCHANGE
9. AUSTRALIAN SECURITIES EXCHANGES SYDNEY EXCHANGE
10. FRANKFURT STOCK EXCHANGE
11. PARIS STOCK EXCHANGE
12. SWX SWISS EXCHANGE, ZURICH
13. MEXICAN STOCK EXCHANGE

MAJOR STOCK EXCHANGES

Major Stock Exchanges (Top 20 by Market Capitalization) | as at 31 October
2012 (Monthly reports | World Federation of Exchanges)
TABLE 2.1 : Different stock exchange in world.

Market
Ran

Stock

Exchange

Capitalizatio
Economy

Headquarters

n
(USD Billions
)

NYSE

NASDAQ

London

Tokyo

Hong Kong

Shanghai

TMX Group

Deutsche

Australian

10

BSE

11

NSE

US

Year-todate
Trade
Value
(USD
Billions)

New York City

16,302

12,693

New York City

5,460

8,914

UK

London

3,526

1,890

Japan

Tokyo

3,275

2,866

Hong Kong

2,633

913

China

Shanghai

2,314

2,176

Canada

Toronto

2,044

1,121

Frankfurt

1,392

1,101

Sydney

1,348

800

India

Mumbai

1,203

93

India

Mumbai

1,178

442

Europe
US
Europe

Hong
Kong

German
y
Australi
a

12

13

SIX Swiss

Switzerl
and

BM&F

Brazil

Bovespa

South

Zurich

1,176

502

So Paulo

1,162

751

Seoul

1,114

1,297

14

Korea

15

Shenzhen

China

Shenzhen

1,098

2,007

16

BME

Spain

Madrid

964

731

17

JSE Limited

Johannesburg

835

287

18

Moscow

Moscow

767

300

19

Singapore

Singapore

741

215

20

Taiwan

Taipei

677

572

Korea

South
Africa
Russia
Singapo
re
Taiwan

HISTORY OF INDIAN STOCK MARKET :

Indian stock market marks to be one of the oldest stock market in Asia. It dates
back to the close of 18th century when the East India Company used to transact
loan securities. In the 1830s, trading on corporate stocks and shares in Bank and
Cotton presses took place in Bombay.
Though the trading was broad but the brokers were hardly half dozen during 1840
and 1850.An informal group of 22 stockbrokers began trading under a banyan tree
opposite the Town Hall of Bombay from the mid-1850s, each investing a (then)
princely amount of Rupee 1. This banyan tree still stands in the Horniman Circle
Park, Mumbai. In 1860, the exchange flourished with 60 brokers. In fact the 'Share
Mania' in India began with the American Civil War broke and the cotton supply
from the US to Europe stopped. Further the brokers increased to 250. The informal
8

group of stockbrokers organized themselves as the The Native Share and

Stockbrokers Association which, in 1875, was formally organized as the Bombay
Stock Exchange (BSE).
BSE was shifted to an old building near the Town Hall. In 1928, the plot of land on
which the BSE building now stands (at the intersection of Dalal Street, Bombay
Samachar Marg and Hammam Street in downtown Mumbai) was acquired, and a
building was constructed and occupied in 1930.
Premchand Roychand was a leading stockbroker of that time, and he assisted in
setting out traditions, conventions, and procedures for the trading of stocks at
Bombay Stock Exchange and they are still being followed. Several stock broking
firms in Mumbai were family run enterprises, and were named after the heads of
the family.
The following is the list of some of the initial members of the exchange, and who
are still running their respective business:
- D.S. Prabhudas & Company (now known as DSP, and a joint venture partner with
Merrill Lynch)
- Jamnadas Morarjee (now known as JM)
- Champaklal Devidas (now called Cifco Finance)
- Brijmohan Laxminarayan
In 1956, the Government of India recognized the Bombay Stock Exchange as the
first stock exchange in the country under the Securities Contracts (Regulation) Act.
The most decisive period in the history of the BSE took place after 1992. In the
aftermath of a major scandal with market manipulation involving a BSE member
named Harshad Mehta, BSE responded to calls for reform with intransigence. The
foot-dragging by the BSE helped radicalise the position of the government, which
encouraged the creation of the National Stock Exchange (NSE), which created an
electronic marketplace. NSE started trading on 4 November 1994. Within less than
a year, NSE turnover exceeded the BSE. BSE rapidly automated, but it never
caught up with NSE spot market turnover. The second strategic failure at BSE
9

came in the following two years. NSE embarked on the launch of equity
derivatives trading. BSE responded by political effort, with a friendly SEBI
chairman (D. R. Mehta) aimed at blocking equity derivatives trading. The BSE and
D. R. Mehta succeeded in delaying the onset of equity derivatives trading by
roughly five years. But this trading, and the accompanying shift of the spot market
to rolling settlement, did come along in 2000 and 2001 - helped by another major
scandal at BSE involving the then President Mr. Anand Rathi. NSE scored nearly
100% market share in the runaway success of equity derivatives trading, thus
consigning BSE into clearly second place. Today, NSE has roughly 66% of equity
spot turnover and roughly 100% of equity derivatives turnover.
Stock Exchange provides a trading platform, where buyers and sellers can meet to
transact in securities.

CAPITAL MARKET :
The capital market is divided into two segments viz:
a) Primary Market
b) Secondary Market

a) PRIMARY MARKET:
Most companies are usually started privately by their promoters. However the
promoters capital and the borrowed capital from banks or financial institutions
might not be sufficient for running the business over the long term. That is when
corporate and the government looks at the primary market to raise long term funds
by issuing securities such as debt or equity.
These securities may be issued at face value, at premium or at discount. Let us
understand the meaning of these terms:
FACE VALUE : Face value is the original cost of the security as shown in the
certificate/instrument. Most equity shares have a face value of Rs. 1, Rs. 5, Rs. 10

10

or Rs. 100 and do not have much bearing on the actual market price of the stock.
When issuing securities, they may be offered at a discount or at a premium.
PREMIUM : When the security is offered at a price higher than the face value
it is called a premium
DISCOUNT : When the security is offered at a price lower than the face
value it is called a discount.

b) SECONDARY MARKET :
The secondary market provides liquidity to the investors in the primary market.
Today we would not invest in any instrument if there was no medium to liquidate
our position. The secondary markets provide an efficient platformfor trading of
those securities initially offered in the primary market. Also those investors who
have applied for shares in an IPO may or may not get allotment. If they dont then
they can always buy the shares (sometimes at a discount or at a premium) in the
secondary market.
Trading in the secondary market is done through stock exchange. The Stock
exchange is a place where the buyers and sellers meet to trade in shares in an
organized manner. The stock exchange performs the following functions:
- Provide trading platform to investors and provide liquidity
- Facilitate Listing of securities
- Registers members - Stock Brokers, sub brokers
- Make and enforce by-laws
-Manage risk in securities transactions
- Provides Indices
There are two leading stock exchanges in India which help us trade are:
i.

NATIONAL STOCK EXCHANGE :

ABOUT NSE :11

The National Stock Exchange (NSE) is India's leading stock exchange covering
various cities and towns across the country. NSE was set up by leading institutions
to provide a modern, fully automated screen-based trading system with national
reach. The Exchange has brought about unparalleled transparency, speed &
efficiency, safety and market integrity. It has set up facilities that serve as a model
for the securities industry in terms of systems, practices and procedures.
NSE has played a catalytic role in reforming the Indian securities market in terms
of microstructure, market practices and trading volumes. The market today uses
state-of-art information technology to provide an efficient and transparent trading,
clearing and settlement mechanism, and has witnessed several innovations in
products & services viz. demutualization of stock exchange governance, screen
based trading, compression of settlement cycles, dematerialization and electronic
transfer of securities, securities lending and borrowing, professionalization of
trading members, fine-tuned risk management systems, emergence of clearing
corporations to assume counterparty risks, market of debt and derivative
instruments and intensive use of information technology.

HISTORY:
The National Stock Exchange (NSE) is stock exchange located at Mumbai, India.
It is in the11th largest stock exchanges in the world by market capitalization and
largest in India by daily turnover and number of trades, for both equities and
derivative trading. NSE has a market capitalization of around US$1 trillion and
over 1,652 listings as of July 2012. Though a number of other exchanges exist,
NSE and the Bombay Stock Exchange are the two most significant stock
12

exchanges in India and between them are responsible for the vast majority of share
transactions. The NSE's key index is the S&P CNX Nifty, known as the
NSE NIFTY (National Stock Exchange Fifty), an index of fifty major stocks
weighted by market capitalization.
NSE is mutually owned by a set of leading financial institutions, banks, insurance
companies and other financial intermediaries in India but its ownership and
management operate as separate entities. There are at least 2 foreign
investors NYSE Euro next and Goldman Sachs who have taken a stake in the
NSE. As of 2006, the NSE VSAT terminals, 2799 in total, cover more than 1500
cities across India. In 2011, NSE was the third largest stock exchange in the world
in terms of the number of contracts (1221 million) traded in equity derivatives. [7] It
is the second fastest growing stock exchange in the world with a recorded growth
of 16.6%.

ORIGINS
The National Stock Exchange of India was set up by Government of India on the
recommendation of Pherwani Committee in 1991.Promoted by leading Financial
institutions essentially led by IDBI at the behest of the Government of India, it was
incorporated in November 1992 as a tax-paying company. In April 1993, it was
recognized as a stock exchange under the Securities Contracts (Regulation) Act,
1956. NSE commenced operations in the Wholesale Debt Market (WDM) segment
in June 1994. The Capital market (Equities) segment of the NSE commenced
operations in November 1994, while operations in the Derivatives segment
commenced in June 2000.

OBJECTIVE:
1.

Establishing nationwide trading facilities for all types of securities.

2.

Ensuring equal access to investors all-over the country through an

appropriate communication network.

3.

Meeting international benchmarks and standards.

13

4.

Enabling shorter settlement cycles and book entry settlements.

TRADING SCHEDULE:Trading takes place on all days of the week except Saturdays & Sundays. The
market timings are as follows:

(1) Pre-open session (Regular)

Order entry & modification Open: 09:00 hrs

Order entry & modification Close: 09:08 hrs*

with random closure in last one minute. Pre-open order matching starts

immediately after close of pre-open order entry.

(2) Pre-open Session for IPO and Relist Securities

Order entry & modification Open: 09:00 hrs

Order entry & modification Close: 09:45 hrs*

with random closure in last one minute. Pre-open order matching starts

immediately after close of pre-open order entry.

(3) Regular trading session

Normal Market Open: 09:15 hrs

Normal Market Close: 15:30 hrs

Block deal session is held between 09:15 hrs and 09:50 hrs.

(4) The Closing Session is held between 15.40 hrs and 16.00 hrs.

The Exchange may also extend, advance or reduce trading hours when its deems fit
and necessary.

ii.

BOMBAY STOCK EXCHANGE:

14

ABOUT BSE:

Established in 1875, BSE Ltd. (formerly known as Bombay Stock Exchange Ltd.),
is Asias first Stock Exchange and one of Indias leading exchange groups. Over
the past 137 years, BSE has facilitated the growth of the Indian corporate sector by
providing it an efficient capital-raising platform. Popularly known as BSE, the
bourse was established as "The Native Share & Stock Brokers' Association" in
1875.
BSE is a corporatized and demutualised entity, with a broad shareholder-base
which includes two leading global exchanges, Deutsche Bourse and Singapore
Exchange as strategic partners. BSE provides an efficient and transparent market
for trading in equity, debt instruments, derivatives, mutual funds. It also has a
platform for trading in equities of small-and-medium enterprises (SME). Around
5000 companies are listed on BSE making it world's No. 1 exchange in terms of
listed members. The companies listed on BSE Ltd command a total market
capitalization of USD Trillion 1.06 as of May 15, 2012. BSE Ltd is world's fifth
most active exchange in terms of number of transactions handled through its
electronic trading system. It is also one of the worlds leading exchanges (5th
largest in May 2012) for Index options trading (Source: World Federation of
Exchanges).
BSE also provides a host of other services to capital market participants including
risk management, clearing, settlement, market data services and education. It has a
global reach with customers around the world and a nation-wide presence. BSE
systems and processes are designed to safeguard market integrity, drive the growth
of the Indian capital market and stimulate innovation and competition across all
15

market segments. BSE is the first exchange in India and second in the world to
obtain an ISO 9001:2000 certifications. It is also the first Exchange in the country
and second in the world to receive Information Security Management System
Standard BS 7799-2-2002 certification for its On-Line trading System (BOLT).
It operates one of the most respected capital market educational institutes in the
country (the BSE Institute Ltd.). BSE also provides depository services through its
Central Depository Services Ltd. (CDSL) arm.
BSEs popular equity index - the SENSEX - is India's most widely tracked stock
market benchmark index. It is traded internationally on the EUREX as well as
leading exchanges of the BRCS nations (Brazil, Russia, China and South Africa).

VISION OF BSE:
"Emerge as the premier Indian stock exchange with best-in-class global practice in
technology, products innovation and customer service."

ACHIEVEMENT OF BSE:
At par with international standards, BSE Ltd. has been a pioneer in several areas
over the decades and has many firsts and key achievements to its credit. BSE is the
first exchange in India to

Launch a special platform for trading in SME securities

Introduce Equity Derivatives

Launch a Free Float Index - SENSEX

Launch Exchange Enabled Internet Trading Platform

Obtain ISO certification for a stock exchange

Exclusive facility for financial training BSE Institute Ltd.

Launch its website in Hindi and regional languages

Host the popular opening-bell ceremony in Indian capital markets

Launch mobile-based trading in India in Sept 2010

Become securities market infrastructure member of SWIFT in India and

provide corporate actions to custodians in ISO 15022 format
16

Launched SENSEX Realized Volatility (REALVOL) Index in Nov 2010

HISTORY:
The Bombay Stock Exchange is the oldest exchange in Asia. It traces its history to
the 1850s, when four Gujarati and one Paris stockbroker would gather under
banyan trees in front of Mumbai's Town Hall. The location of these meetings
changed many times, as the number of brokers constantly increased. The group
eventually moved to Dalal Street in 1874 and in 1875 became an official
organization known as 'The Native Share & Stock Brokers Association'. In 1956,
the BSE became the first stock exchange to be recognized by the Indian
Government under the Securities Contracts Regulation Act. The Bombay Stock
Exchange developed the BSE SENSEX in 1986, giving the BSE a means to
measure overall performance of the exchange. In 2000 the BSE used this index to
open its derivatives market, trading SENSEX futures contracts. The development
of SENSEX options along with equity derivatives followed in 2001 and 2002,
expanding the BSE's trading platform. Historically an open outcry floor trading
exchange, the Bombay Stock Exchange switched to an electronic trading system in
1995. It took the exchange only fifty days to make this transition. This automated,
screen-based trading platform called BSE On-line trading (BOLT) currently has a
capacity of 8 million orders per day. The BSE has also introduced the world's first
centralized exchange-based internet trading system, BSEWEBx.co.in to enable
investors anywhere in the world to trade on the BSE platform. The BSE is
currently housed in Phiroze Jeejeebhoy Towers at Dalal Street, Fort area.

A)HISTORY OF SOUTH GUJARAT SHARES AND

SHAREBROKERS LIMITED (SGSSL)
COMPANY NAME: - Gujarat Shares and Share brokers Limited (SGSSL)
ADDRESS: - 3RD FLOOR, BELGIUM CHAMBERS, OPP. LINEAR BUS STOP,
RING ROAD, SURAT- 395003.
17

Initially, in the year 1992, the company South Gujarat Shares and Share brokers
Limited (SGSSL) was started as an Association & later on it was incorporated as a
Company under the Companies Act on 5th January, 1995, by our esteemed
Founder person Shri Anil J. Choksy & other esteemed members. He is one of our
esteemed directors & in past he has served as the Chairman cum Managing
Director. By his visionary grace he has put our company to very glorious situation.
He, along with the co-operation of other esteemed Director, has served the
company in a best way.
The company has obtained SEBI registration as Stock Broker on 27th February,
1996 and has started its activities on 18th April, 1996, as fully fledged member of
the National Stock Exchange (NSE). Originally the operations were started at
Baroda, since NSE at that time was not providing connectivity at Surat.
Subsequently, once NSE connectivity was made available at Surat, the operations
were shifted to Surat on 23rd July, 1996 at the present location of Belgium
Chambers, Surat.
The company has been stressing on the delivery oriented securities trading and
since its inception has been consistently one of the major delivering members. The
company has been diligent in ensuring compliance with the securities trading and
settlement regulations of the NSE.
SGSSL are proud of the fact that weve maintained a record of prompt payouts to
our customers, winning a reputation for reliability and transparency that is not too
common a currency in this business. We are the Depository Participant (DP) of
National Securities Depository Limited. We are first Stock Broker & the first DP to
start its activities within the South Gujarat region. We have DP clients over 17500,
number of retail clients is over 6000 & number of mutual fund clients is over 500.
SGSSL are the Corporate Member of National Stock Exchange of India Limited
(NSE), Bombay Stock Exchange Limited (BSE), MCX Stock Exchange Limited
(MCX-SX), and NSE F & O Segment & Depository Participant of National Spot
Exchange Limited.
Shri Aiyub Mohamed Yacoobali is associated with the company since year 2001.
He has joined the board as Managing Director in the year 2006 and under his
18

proficient guidance the company has grown up rapidly into a full-flashed mediumsize broking house over a short period. He is also a Permanent Director. His rich
experience in corporate advisory services helps the Company to gain a lot.
Apart from Broking Business, SGSSL provides NRI services & is also engaged in
the Distribution Business offering advisory Services of Investments into Mutual
Funds, Investment Advisory, Initial Public Offer (IPO), Life Insurance and other
small saving products, etc. The distribution services add up to our broking
business. It caters to the investment need of corporate groups, high net-worth
individuals

as

well

as

retail

clients

both

in

India

and

abroad.

SGSSL are further planning to start the Portfolio Management Services (PMS) &
Wealth Management Services (WMS).
SGSSL strive to provide with the best services and make our clients' life as simple
as possible. We firmly believe in customer centric and transparent approach which
is backed up by strong technological support. The organization finds its strength in
its team of young, talented and confident individuals.
The operations of the company are headed by Shri Mohamed Yacoobali, the
Chairman of the company. He along with other full time directors maintains a close
hand on the operations. Shri Bhadresh G. Kapadia is the Whole time Director &
Compliance Officer. The directors of the Company have expertise and rich
experience in the field of Financial Services. The Company has its own internal
trading and settlement regulations which are in conformity with the NSE and SEBI
regulations. These regulations ensure that the activities of the company are
managed on the professional lines and in the best interest of the investors and the
shareholder of the company.
SGSSL are glad to inform you that SGSSL is graded by CRISIL (A Standard and
Poor's Company) as NSIC - CRISIL Rating SE3B and our website is also verified
by CRISIL. Our logo is registered and Trademark registration number is 2165047.

BOAD OF DIRECTORS:

Mr. Mohamed M. Yacoobali Chairman

Mr. Anil J. Choksi - Vice Chairman
Mr. Aiyub M Yacoobali - Managing Director
Mr. Bhadresh G. Kapadia - Whole time Director
Mr. Hashim M. Yacoobali Director
19

 Mr. Nehal C. Rupawala Director

OUR BUSINESS POLICY:

Ethical Practices
Customer Satisfaction
Transparency
Personalized Attention and Solutions
Integrity and Honesty
Effective Managements
Research Based Advisory Services

OUR MANTRA: For us, Growth means Wealth Creation

B) MISSION:Our mission is Profitable growth through customer satisfaction in terms of

wealth creation, superior and committed Financial Services to cater all class of
Investors
SERVICE + GROWTH + SATISFACTION + SAFETY + LOYALTY = SGSSL

C)SGSSL PRODUCT :SGSSL provide our clients brokering in Equities, derivative & commodities.
1.

EQUITIES :-

South Gujarat Shares and share broker limited, clients to deal on exchange of the
country, there stock exchange are NSE & BSE. Capital market segment through
smaller in volumes than derivatives are very virtual for the success of the medium
and small investors. We advice client dealings on BSE & NSE for equities market.
2.

COMMODITIES :-

Commodities have lately forged new possibilities for participation of investors and
trade. Commodities hold a wide range of unexplored opportunity to evade business
20

risk, while providing attractive investment and trading prospects for investors as
well as trader.
We back clients and provide an efficient platform to trade on both the commodities
exchange, which are the multi commodity exchange of India ltd (MCX). The
National commodity & Derivatives exchange ltd (NCDEX).
3.

DERIVATIVE'

South Gujarat stock & broker also provides service for its clients wanting to deal in
the derivatives segment of the NSE & BSE. All client dealing on the exchange in
all types of future and option (call and put), conducted through us are duly support
by dedicated sales and trading in our trading desks.

4. ONLINE TRADING :It is user friendly services to customers so that they can manage their stock
portfolio. Including, online capabilities linked to an information database to help
customer invest, confidently. E- Broking service is specially developed for the
traders and investors who prefer operating from their home or office, through the
internet.

A. INTRODUCTION

OF

JAPANESE

STOCK

EXCHANGE
WHAT IS NIKKEI:Short for Japan's Nikkei 225 Stock Average, the leading and most-respected index
of Japanese stocks. It is a price-weighted index comprised of Japan's top 225 bluechip companies on the Tokyo Stock Exchange. The Nikkei is equivalent to the
Dow Jones Industrial Average Index in the U.S. In fact, it was called the Nikkei
Dow Jones Stock Average from 1975 to 1985.

HISTORY OF NIKKEI:21

The Nikkei 225 ( Nikkei hiking kabuki, 225), more commonly called the Nikkei,
the Nikkei index, or the Nikkei Stock Average is a stock market index for
the Tokyo Stock Exchange (TSE). It has been calculated daily by the Nihon Keizai
Shimbun (Nikkei) newspaper since 1950. It is a price-weighted index (the unit
is yen), and the components are reviewed once a year. Currently, the Nikkei is the
most widely quoted average of Japanese equities, similar to the Dow Jones
Industrial Average. In fact, it was known as the "Nikkei Dow Jones Stock Average"
from 1975 to 1985.
The Nikkei 225 began to be calculated on September 7, 1950, retroactively
calculated back to May 16, 1949. Since January 2010 the index is updated every 15
seconds during trading sessions.
The Nikkei 225 Futures, introduced at Singapore Exchange (SGX) in 1986, the
Osaka Securities Exchange (OSE) in 1988, Chicago Mercantile Exchange (CME)
in 1990, is now an internationally recognized futures index.
The Nikkei average has deviated sharply from the textbook model of stock
averages which grow at a steady exponential rate. The average hit its all-time high
on December 29, 1989, during the peak of the Japanese asset price bubble, when it
reached an intra-day high of 38,957.44 before closing at 38,915.87, having grown
six fold during the decade. Subsequently, it lost nearly all these gains, closing at
7,054.98 on March 10, 200981.9% below its peak twenty years earlier.
Another major index for the Tokyo Stock Exchange is the Topix.
On March 15, 2011, the second working day after the massive earthquake in the
northeast part of Japan, the index dropped over 10% to finish at 8605.15, a loss of
1,015 points. This put it at its lowest close since March 10, 2009.

FIGURE 4.1: Tokyo stock exchange movement

22

NIKKEI CALCULATION METHOD:The presumed value is set for each component, which succeeds "par value system"
used to be introduced for Japanese stocks, and the each component stock price is
adjusted by the presumed par value. The Nikkei 500 Average is calculated by
dividing the summation of the adjusted prices by the divisor. The purpose of the
divisor is to maintain the continuity of the index by eliminating the effect of
external factors not directly related to the market movement in calculating the
price-weighted index. This method using the divisor is called "Dow adjustment".

FIGURE 4.2: Nikkei calculation methodology.

WHAT IS NIKKEI STOCK AVERAGE (NIKKEI 225) :-

23

The Nikkei 225 is a stock price Index published by Nikkei Digital Media, Inc. It is
calculated as the average price of 225 representative stocks traded on the first
section of the Tokyo Stock Exchange. The Nikkei 225 is calculated by adjusting
the divisor to maintain continuity as needed, using the same method as the Dow
Jones Industrial Average.

NIKKEI STOCK AVERAGE=

of stock price of 225 constituents

Divisior

Note: - stocks that do not have a par value of 50 yen are converted to 50 yen par
value.

The current calculation method was first adopted in 1950, and the Index is
calculated retroactive to 1949. The Nikkei Stock Average has the longest history
among stock indices in Japan, and is well known by investors and others concerned
with the stock market in Japan and around the world. The 225 components are
reviewed annually based on market liquidity and sector balance criteria. In
addition, they are reviewed in response to mergers or delisting of component
issues.

B. INTRODUCTION TO INDIAN STOCK EXCHANGE

1. NIFTY
NIFTY & ITS MEANING IN INDIAN STOCK MARKET
Nifty is a very common term of share market. Index of NSE (National stock
exchange) is known as Nifty. It comprises of 50 shares or stocks or corporations
thats why it is sometimes known as Nifty 50. Nifty is an indicator of all major
companies of NSE. Nifty 50 is used for a variety of purposes such as index funds,
24

index based derivatives and benchmarking fund portfolios. It is professionally

maintained for derivative trading. It is an index accounting for total of 21 sectors
of the economy. Nifty 50 has got good reputation in the bull markets of 1970s. It
is officially known as S&P CNX Nifty. Full form of S&P CNX Nifty is Standard
& Poors CRISIL NSE Index 50. Nifty 50 stocks were credited by the Bull
Market. Nifty is basically based on top 50 companys profit. Nifty 50 is based
upon solid economic research.
Future contracts on National Stock Exchange of India are based on S&P CNX
Nifty. From June 26, 2009, Nifty 50 is computed on the terminology called FreeFloat Terminology. The free-float methodology is the more correct way to
compute both the index as well as the weight of individual stocks in the index.
Today Nifty is owned and operated by IISL. IISL is a global phenomenon where
company calculates and maintains the index. IISL is being launched by joined
venture of NSE and CRISIL to focus on Management of Index. IISL stands for
India Index Services and Products Limited. IISl is Indias first specialized
Company which focuses on INDEX as a core product. Nifty is created for those
who are interested in trading and investing in Indian Equities.

S&P CNX NIFTY

The S&P CNX Nifty, also called the Nifty 50 or simply the Nifty, is a stock market
index and benchmark index for Indian equity market. Nifty is owned and managed
by India Index Services and Products Ltd. (IISL), which is a joint venture
between NSE and CRISIL (Credit Rating and Information Services of India
Ltd). IISL is India's first specialized company focused upon the index as a core
product. IISL has marketing and licensing agreement with Standard & Poor's for
co-branding equity indices. 'CNX' in its name stands for 'CRISIL NSE Index'.
S&P CNX Nifty has shaped up as the largest single financial product in India, with
an ecosystem comprising: exchange traded funds (onshore and offshore),exchangetraded futures and options (at NSE in India and at SGX and CME abroad), other
index funds and OTC derivatives (mostly offshore).
The S&P CNX Nifty covers 22 sectors of the Indian economy and offers
investment managers exposure to the Indian market in one portfolio. The S&P
25

CNX Nifty stocks represent about 67.27% of the free float market capitalization of
the stocks listed at National Stock Exchange (NSE) as on September 30, 2012.
The S&P CNX Nifty currently consists of the following 50 major Indian
companies:

ABOUT NIFTY:S&P CNX Nifty is a well diversified 50 stock index accounting for 21 sectors of
the economy. It is used for a variety of purposes such as benchmarking fund
portfolios, index based derivatives and index funds.
S&P CNX Nifty is owned and managed by India Index Services and Products Ltd.
(IISL), which is a joint venture between NSE and CRISIL. IISL is Indias first
specialized company focused upon the index as a core product. IISL has Marketing
and licensing agreement with standard & poors (S&P), who world leaders are in
index services.
The traded value for the last six months of all Nifty stocks is approximately
44.89% of the traded value of all stocks on the NSE

Nifty stocks represent about 58.64% of the total market capitalization as on

March 31, 2008.

Impact cost of the S&P CNX Nifty for a portfolio size of Rs.2 core is
0.15%

S&P CNX Nifty is professionally maintained and is ideal for derivatives

trading

NIFTY INDEX SELECTION CRITERIA:Selection of the nifty index set is based on the following criteria:

Liquidity (Impact Cost)

Float-Adjusted Market Capitalization
Float
Domicile
Eligible Securities
Other Variables
26

LIQUIDITY :- For inclusion in the index, the security should have traded at an
average impact cost of 0.50 % or less during the last six months, for 90% of the
observations. Impact cost is the cost of executing a transaction in a security in
proportion to its index weight, measured by market capitalization at any point in
time. This is the percentage mark up suffered while buying/selling the desired
quantity of a security compared to its ideal price -- (best buy + best sell)/2.

FLOAT-ADJUSTED MARKET CAPITALIZATION: - Companies

eligible for inclusion in the S&P CNX Nifty must have at least twice the floatadjusted market capitalization of the current smallest index constituent.

FLOAT: - Companies eligible for inclusion in the S&P CNX Nifty should have
at least 10% of its stock available to investors (float). For this purpose, float is
stocks which are not held by the promoters and associated entities (where
identifiable) of such companies.

DOMICILE: - The Company must be domiciled in India and trade on the NSE.
ELIGIBLE SECURITIES: - All common shares listed on the NSE (which
are of equity and not of a fixed income nature) are eligible for inclusion in the S&P
CNX Nifty index. Convertible stock, bonds, warrants, rights, and preferred stock
that provide a guaranteed fixed return are not eligible. Standard & Poors: S&P
CNX Nifty Methodology 6
OTHER VARIABLES :- A company which comes out with an IPO is eligible for
inclusion in the index if it fulfills the normal eligibility criteria for the index -impact cost, float-adjusted market capitalization and float -- for a three-month
period instead of a six-month period.

INDEX CALCULATION FORMULAS:The S&P CNX Nifty index is computed by dividing the float-adjusted market

27

Capitalization of the index component securities as of current date (MCn) by the

floated jested market capitalization of the same securities as of initial date (MC1)
multiplied by the index value as of initial date (I1):
In = ( I1 * MCn) / MC1
Where:
MCn = Float-adjusted index market capitalization as of the current date.
MCn =

n pi * Qi

Where:
Qi = Number of float adjusted shares outstanding of the ith issue as of the
Current date.
Pi = Security price of the ith issue as of the current date.
N = Total number of component securities used in the index calculation.

2. SENSEX :The BSE SENSEX (Bombay Stock Exchange Sensitive Index), also called
the BSE 30 (BOMBAY STOCK EXCHANGE)or simply the SENSEX, is a freefloat market capitalization-weighted stock market index of 30 well-established and
financially sound companies listed on Bombay Stock Exchange (BSE). The 30
component companies which are some of the largest and most actively traded
stocks are representative of various industrial sectors of the Indian economy.
Published since January 1, 1986, the SENSEX is regarded as the pulse of the
domestic stock markets in India. The base value of the SENSEX is taken as 100 on
April 1, 1979, and its base year as 1978-79. On 25 July 2001 BSE
launched DOLLEX-30, a dollar-linked version of SENSEX. As of 21 April 2011,
the market capitalization of SENSEX was about 29,733 billion (US$541
billion) (47.68% of market capitalization of BSE), while its free-float market
capitalization was 15,690 billion (US$286 billion).

HISTORY OF SENSEX:SENSEX, first compiled in 1986, was calculated on a "Market CapitalizationWeighted" methodology of 30 component stocks representing large, well28

established and financially sound companies across key sectors. The base year of
SENSEX was taken as 1978-79. SENSEX today is widely reported in both
domestic and international markets through print as well as electronic media. It is
scientifically designed and is based on globally accepted construction and review
methodology. Since September 1, 2003, SENSEX is being calculated on a freefloat market capitalization methodology. The "free-float market capitalizationweighted" methodology is a widely followed index construction methodology on
which majority of global equity indices are based; all major index providers like
MSCI, FTSE, STOXX, S&P and Dow Jones use the free-float methodology.
The growth of the equity market in India has been phenomenal in the present
decade. Right from early nineties, the stock market witnessed heightened activity
in terms of various bull and bear runs. In the late nineties, the Indian market
witnessed a huge frenzy in the 'TMT' sectors. More recently, real estate caught the
fancy of the investors. SENSEX has captured all these happenings in the most
judicious manner. One can identify the booms and busts of the Indian equity
market through SENSEX. As the oldest index in the country, it provides the time
series data over a fairly long period of time (from 1979 onwards). Small wonder,
the SENSEX has become one of the most prominent brands in the country.

SENSEX CALCULATION METHODOLOGY:SENSEX index was calculated based on the "full market capitalization method".
However this was shifted to the free float method with effect from September 1,
2003. Globally, the free float market capitalization is regarded as the industry best
practice.
As per free float capitalization methodology, the level of index at any point of
time reflects the free float market value of 30 component stocks relative to a base
29

period. The market capitalization of a company is determined by multiplying the

price of its stock by the number of shares issued by the company. This market
capitalization is multiplied by a free float factor to determine the free float market
capitalization. Free float factor is also referred as adjustment factor. Free float
factor represents the percentage of shares that are readily available for trading.
The calculation of SENSEX involves dividing the free float market capitalization
of 30 companies in the index by a number called index divisor. The divisor is the
only link to original base period value of the SENSEX. It keeps the index
comparable over time and is the adjustment point for all index adjustments arising
out of corporate actions, replacement of scraps, etc.
The index has increased by over ten times from June 1990 to the present. Using
information from April 1979 onwards, the long-run rate of return on SENSEX
works out to be 18.6% per annum, which translates to roughly 9% per annum.

INDEX SPECIFICATION:-

Base Year

1978-79

Base Index Value

100
01-01-1986

Date of Launch
Method of calculation

Launched on full market capitalization

method and effective September 01,
2003,

calculation

method

shifted

to free-float market capitalization.

Number of scraps
30
TABLE 4.1 : Sensex index specification

FORMULA FOR CALCULATION OF INDEX :All BSE indices (except BSE-PSU index) are calculated using following
FORMULA:
Free-float market capitalization of index constituents/ Base Market
capitalization * Base Index Value
30

For calculation of BSE-PSU index, full market capitalization of index constituents

is considered instead of free-float market capitalization. Dollex-30, Dollex-100 and
Dollex-200 are dollar-linked versions of SENSEX, BSE-100 and BSE-200 index.
For more details click 'Dollex series of BSE indices'.

STATISTICAL TOOLS:1) Mean :One of the most useful and widely used techniques for doing thisone which you
already knowis the average, or, as it is know in statistics, the mean. And you
know how to calculate the mean: you simply add up a set of scores and divide by
the number of scores. Thus we have our first and perhaps the most basic statistical
formula:
x=

X
N

Where:
(sometimes call the X-bar) is the symbol for the mean.
(the Greek letter sigma) is the symbol for summation.
X is the symbol for the scores.
N is the symbol for the number of scores.
So this formula simply says you get the mean by summing up all the scores and
dividing the total by the number of scoresthe old average, which in this case
were all familiar with, so its a good place to begin.
This is pretty simple when you have only a few numbers. For example, if you have
just 6 numbers (3, 9, 10, 8, 6, and 5), you insert them into the formula for the
mean, and do the math:
31

x=

X
N

X = 41(3+9+10+8+5) / 6 = 6.83
But we usually have many more numbers to deal with, so lets do a couple
examples where the numbers are larger, and show how the calculations should be
done. In our first example, were going to compute the mean salary of 36 people.
The "mean" is the "average" you're used to, where you add up all the numbers and
then divide by the number of numbers. The "median" is the "middle" value in the
list of numbers. To find the median, your numbers have to be listed in numerical
order, so you may have to rewrite your list first.

2) CORRELATION ( r ) :The Pearson correlation is +1 in the case of a perfect positive (increasing) linear
relationship (correlation), 1 in the case of a perfect decreasing (negative) linear
relationship (anticorrelation) and some value between 1 and 1 in all other cases,
indicating the degree of linear dependence between the variables. As it approaches
zero there is less of a relationship (closer to uncorrelated). The closer the
coefficient is to either 1 or 1, the stronger the correlation between the variables.
If we have a series of n measurements of X and Y written as xi and yi where i = 1, 2,
..., n, then the sample correlation coefficient can be used to estimate the population
Pearson correlation r between X and Y. The sample correlation coefficient is
written
where x and y are

the

sample means of X and Y,

and sx and sy are

the sample

standard deviations of X and Y.

This can also be written as:

If x and y are results of measurements that contain measurement error, the realistic
limits on the correlation coefficient are not 1 to +1 but a smaller range.

32

That is, when one attribute shows an increase in value, the other attribute tends to
show a decrease. Consider two variables X and Y.

If r = 1, then x and y are perfectly positively correlated. The possible values of x

and y.
All lie on straight line with a positive slop in the index (x , y) plane.
If r = 0, then x and y are not correlated. They do not have an apparent liner

relationship.
However, this does not mean that x and y are statistically independent
If r = 1, then x and y are perfectly negatively correlated. The possible values of x
and y.

1. RESEARCH :Clover & Balsley defines research as

The process of systematically obtaining accurate answers to significant &
pertinent questions by the use of scientific method of gathering & interpreting
information.

33

Research always start with problem, its propose to find the answer of the question
with application of scientific method, it is systematic and intensive study directed
towards more complex knowledge of the subject studied.

2. RESEARCH METHODOLOGY :Research methodology is a systematically solve the research problem. It may be
understood as a science of studying how research is done scientifically. In it we
study the various steps that are generally adopted by a researcher in studying his
research problem along with the logic behind them. It is necessary for the
researcher to know not only the research methods/techniques but also the
methodology.

3. OBJECTIVE OF RESEARCH :A. MAIN OBJECTIVE OF THIS RESEARCH PROJECT IS :

To study the impact of movements in Japan stock market on Indian stock
market.
B. THE SUBSIDARY OBJECTIVE OF THIS RESEARCH PROJECT IS :
To determine the correlation between Japan stock market and Indian stock
markets.
To determine the relation between two variable Japan stock market & Indian
stock market Where x is % change in Nikkei industrial average closing price &
Y1 is % change in Nifty index & Y2 is % change in sensex.

4. RESEARCH DESIGN :There are two types of research design

RESEARCH DESING

EXPLORATORY RESEARCH

CONCLUSIVE RESEARCH

RESEARCH DESIGN:-

34

A research design is specification of method & procedures for acquiring

information need.
The Nikkei, Nifty-50, and sensex-30 indices are taken as samples in the study.

1. EXPLORATORY RESEARCH
Exploratory research is focus on the discovery of ideas.
An exploratory research is generally based on the secondary data that
are readily available.

2. CONCLUSIVE RESEARCH
There are two types of conclusive research.
a. DESCRIPTIVE DESIGNS
Descriptive designs study is undertaken in many circumstances.
When the research is interested in knowing the characteristic of certain
groups such as age, gender, educational level, occupation or income, a
descriptive study may be necessary.
i.

Longitudinal designs
It is based on panel data and panel methods. A panel is a sample of
respondents who are interviewed and then re-interviewed form time
to time.

ii.

Cross sectional designs

A cross sectional study is concerned with a sample of elements form a
given population. It may deal with households, dealers, retail store or
other entities.
I.
Single sectional
II.
Multi sectional

b. CAUSAL DESIGNS
For this study a causal research will be conducted to establish relationship
between the two variable and to find out whether there is an impact of one
variable on the another or not. Ex. X= Nikkei industrial average and y=
Indian stock markets
i.
Method of agreement
ii.
Method of disagreement
This report is based on causal research design.

5. METHODS OF DATA COLLECTION

There are two types of data
1. PRIMARY DATA
2. SECONDARY DATA
35

PRIMARY DATA:The primary data are those which are collected for first time.
There are three types of primary data collection methods.
PRIMARY DATA

Observation Methods

Survey Methods

Experiment

OBSERVATION:
Observation is one of the methods of collecting data. It is used to get both past and
current information.
EXPERIMENT:
This is an experiment conducted in a real life situation in which the experimenter
manipulates independent variables in order to test a hypothesis. Compared with
laboratory experiment, a field experiment incorporates less control.

SECONDARY DATA:The Secondary data are those which are already collected and used for some other
context.
This report contains only secondary data as to use the secondary data for
analysis of the effect of Nikkei price on the nifty index and on sensex.
Nikkei price, sensex, and nifty closing price form year 2008 to 2012 have been
taken.

i.

SAMPLE SIZE :-

1. Weekly average of NIKKEI of last 5years. i.e. 2009 to 2013

2. Weekly average of SENSEX of last 5years. i.e. 2009 to 2013
3. Weekly average of NIFTY of last 5years. i.e. 2009 to 2013

6. BENEFITS OF STUDY :36

 This study helps to know the global equity market scenario.

It also helps the investors of India in taking decision about their investment.
It help to understand the relationship between two countries stock market i.e.
Japanes and Indian stock market.

7. LIMITATION OF STUDY : The study is for limited to period of 5 years and weekly average only, so it may
reflect difference in result for longer time period.
Secondary data is used to carry out this study. It may not be 100% reliable.

A. CORRELATION BETWEEN NIKKEI & SENSEX :1. CORRELATION BETWEEN NIKKEI & SENSEX FOR 2008
(WEEKLY)
TABEL 6.1 : Co-relation between Nikkei & Sensex on 2008.
MONTH

NIKKEI

SENSEX

X*

Y*

X2

Y2

X*Y

Jan-08

14110.79

19013.7

Jan-08

13861.29

18361.66

-1.77

-3.43

3.13

11.76

6.06

Jan-08

13629.16

18242.58

-1.67

-0.65

2.80

0.42

1.09

Jan-08

13497.16

17464.89

-0.97

-4.26

0.94

18.17

4.13

Feb-08

13017.24

18115.25

-3.56

3.72

12.64

13.87

-13.24

Feb-08

13622.56

17349.07

4.65

-4.23

21.62

17.89

-19.67

Feb-08

13500.46

17578.72

-0.90

1.32

0.80

1.75

-1.19

Feb-08

13603.02

15975.52

0.76

-9.12

0.58

83.18

-6.93

Mar-08

12782.8

15760.52

-6.03

-1.35

36.36

1.81

8.11

Mar-08

12241.6

14994.83

-4.23

-4.86

17.93

23.60

20.57

Mar-08

12482.57

16371.29

1.97

9.18

3.87

84.26

18.07

Mar-08

12820.47

15343.12

2.71

-6.28

7.33

39.44

-17.00

Mar-08

13293.22

15807.64

3.69

3.03

13.60

9.17

11.16

Apr-08

13323.73

16481.2

0.23

4.26

0.05

18.16

0.98

Apr-08

13476.45

17125.98

1.15

3.91

1.31

15.31

4.48

Apr-08

13863.47

17600.12

2.87

2.77

8.25

7.66

7.95

Apr-08

14049.26

16737.07

1.34

-4.90

1.80

24.05

-6.57

May-08

13655.34

17434.94

-2.80

4.17

7.86

17.39

-11.69

May-08

14219.48

16649.64

4.13

-4.50

17.07

20.29

-18.61

May-08

14012.2

16415.57

-1.46

-1.41

2.12

1.98

2.05

May-08

14338.54

15572.18

2.33

-5.14

5.42

26.40

-11.97
37

Jun-08

14489.44

15189.62

1.05

-2.46

1.11

6.04

-2.59

Jun-08

13973.73

14571.29

-3.56

-4.07

12.67

16.57

14.49

Jun-08

13942.08

13802.22

-0.23

-5.28

0.05

27.86

1.20

Jun-08

13544.36

13454

-2.85

-2.52

8.14

6.37

7.20

Jun-08

13237.89

13469.85

-2.26

0.12

5.12

0.01

-0.27

Jul-08

13039.69

13635.4

-1.50

1.23

2.24

1.51

-1.84

Jul-08

12803.7

14274.94

-1.81

4.69

3.28

22.00

-8.49

Jul-08

13334.76

14656.69

4.15

2.67

17.20

7.15

11.09

Jul-08

13094.59

15167.82

-1.80

3.49

3.24

12.16

-6.28

Aug-08

13168.41

14724.18

0.56

-2.92

0.32

8.55

-1.65

Aug-08

13019.41

14401.49

-1.13

-2.19

1.28

4.80

2.48

Aug-08

12666.04

14564.53

-2.71

1.13

7.37

1.28

-3.07

Aug-08

13072.87

14483.83

3.21

-0.55

10.32

0.31

-1.78

Sep-08

12212.23

14000.81

-6.58

-3.33

43.34

11.12

21.95

Sep-08

12214.76

14042.32

0.02

0.30

0.00

0.09

0.01

Sep-08

11920.86

13102.18

-2.41

-6.70

5.79

44.82

16.11

Sep-08

11893.16

12526.32

-0.23

-4.40

0.05

19.32

1.02

Sep-08

10938.14

10527.85

-8.03

-15.95

64.48

254.54

128.11

Oct-08

8276.43

9975.35

-24.33

-5.25

592.15

27.54

127.71

Oct-08

8693.82

8701.07

5.04

-12.77

25.43

163.18

-64.42

Oct-08

7649.08

9788.06

-12.02

12.49

144.41

156.07

-150.12

Oct-08

8576.98

9964.29

12.13

1.80

147.16

3.24

21.84

Nov-08

8583

9385.42

0.07

-5.81

0.00

33.75

-0.41

Nov-08

8462.39

8915.21

-1.41

-5.01

1.97

25.10

7.04

Nov-08

7910.79

9092.72

-6.52

1.99

42.49

3.96

-12.98

Nov-08

8512.27

8965.2

7.60

-1.40

57.81

1.97

-10.66

Dec-08

7917.51

9690.07

-6.99

8.09

48.82

65.37

-56.49

Dec-08

8235.87

10099.91

4.02

4.23

16.17

17.89

17.01

Dec-08

8588.52

9328.92

4.28

-7.63

18.33

58.27

-32.69

Dec-08

8739.52

9958.22

1.76

6.75

3.09

45.50

11.86

Dec-08

8859.56

9406.47

1.37

-5.54

1.89

30.70

-7.61

-38.67

62.57

1451.2

1513.6

5.55

Total

38

15
10
5
0
X* -

-5

Y* -

-10
-15
-20
-25
-30

FIGURE 6.1: Determination of Nikkei percentage change & Sensex percentage

change.

INTERPRETATION:*X = % Return on Nikkei closing price

X=

P0 P1
P1

*Y = % return on Sensex closing price

Y=

P 0 P1
P1

39

r=

51(5.55 ) (-38.67 )( -62.57)

51(1451.2) (-38.67)2

51(1513.6) (-62.57)2

-2130.98
74378.03

- 0.029

INTERPRETION :It is interpreted from the above calculation, that X i.e. percentage change in Nikkei
and Y i.e. percentage change in sensex is negatively co-related to each other. The
correlation between these two variable is - 0.029 in 2008. This means that when X
increased by 1 % , Y decreased by -0.029 % .

2.

CORRELATION BETWEEN NIKKEI & SENSEX FOR 2009

(WEEKLY)
TABLE 6.1 : Co-relation between Nikkei & Sensex on 2009.

40

SENSE

X2

MONTH

NIKKEI

Y2

X*Y

Jan-09

8836.8

9323.59

Jan-09

8230.15

8674.35

-6.87

-6.96

47.13

48.49

47.80

Jan-09

7745.25

9424.24

-5.89

8.64

34.71

74.73

-50.93

Jan-09

7994.05

9300.86

3.21

-1.31

10.32

1.71

-4.21

Feb-09

8076.62

9634.74

1.03

3.59

1.07

12.89

3.71

Feb-09

7779.4

8843.21

-3.68

-8.22

13.54

67.49

30.23

Feb-09

7416.38

8891.61

-4.67

0.55

21.78

0.30

-2.55

Feb-09

7568.42

8325.82

2.05

-6.36

4.20

40.49

-13.04

Mar-09

7173.1

8756.61

-5.22

5.17

27.28

26.77

-27.03

Mar-09

7569.28

8966.68

5.52

2.40

30.51

5.76

13.25

Mar-09

7945.96

10048.49

4.98

12.06

24.76

145.56

60.04

Mar-09

8626.97

10348.83

8.57

2.99

73.45

8.93

25.62

Mar-09

8749.84

10803.86

1.42

4.40

2.03

19.33

6.26

Apr-09

8964.11

11023.09

2.45

2.03

6.00

4.12

4.97

Apr-09

8907.58

11329.05

-0.63

2.78

0.40

7.70

-1.75

Apr-09

8707.99

11403.25

-2.24

0.65

5.02

0.43

-1.47

Apr-09

8977.37

11876.43

3.09

4.15

9.57

17.22

12.84

May-09

9432.83

12173.42

5.07

2.50

25.74

6.25

12.69

May-09

9265.02

13887.15

-1.78

14.08

3.16

198.18

-25.04

May-09

9225.81

14625.25

-0.42

5.31

0.18

28.25

-2.25

May-09

9522.5

15103.55

3.22

3.27

10.34

10.70

10.52

Jun-09

9768.01
10135.8

15237.94

2.58

0.89

6.65

0.79

2.29

Jun-09

14521.89

3.77

-4.70

14.18

22.08

-17.69

Jun-09

9786.26

14764.64

-3.45

1.67

11.89

2.79

-5.76

Jun-09

9877.39

14913.05

0.93

1.01

0.87

1.01

0.94

Jun-09

9816.07

13504.22

-0.62

-9.45

0.39

89.25

5.86

Jul-09

9287.28

14744.92

-5.39

9.19

29.02

84.41

-49.49

Jul-09

9395.32

15378.96

1.16

4.30

1.35

18.49

5.00

Jul-09

9944.55
10356.8

15670.31

5.85

1.89

34.17

3.59

11.07

Jul-09
Aug-09

3
10412.0

15160.24
15411.63

4.15
0.53

-3.26
1.66

17.19
0.28

10.60
2.75

-13.49
0.88

41

9
10597.3
Aug-09

15240.83

1.78

-1.11

3.17

1.23

-1.97

Aug-09

10238.2
10534.1

15922.34

-3.39

4.47

11.48

20.00

-15.15

Aug-09

15689.12

2.89

-1.46

8.36

2.15

-4.23

Aug-09

10187.11 16264.3
10444.3

-3.29

3.67

10.85

13.44

-12.08

Sep-09

3
10370.5

16741.3

2.52

2.93

6.38

8.60

7.41

Sep-09

4
10265.9

16693

-0.71

-0.29

0.50

0.08

0.20

Sep-09

17134.55

-1.01

2.65

1.02

7.00

-2.67

Sep-09

9731.87
10016.3

16642.66

-5.20

-2.87

27.07

8.24

14.94

Oct-09

9
10257.5

17322.82

2.92

4.09

8.55

16.70

11.95

Oct-09

6
10282.9

16810.81

2.41

-2.96

5.80

8.74

-7.12

Oct-09

9
10034.7

15896.28

0.25

-5.44

0.06

29.60

-1.35

Oct-09

16158.28

-2.41

1.65

5.83

2.72

-3.98

Nov-09

9789.35

16848.83

-2.45

4.27

5.98

18.26

-10.45

Nov-09

9770.31

17021.85

-0.19

1.03

0.04

1.05

-0.20

Nov-09

9497.68

16632.01

-2.79

-2.29

7.79

5.25

6.39

Nov-09

9081.52
10022.5

17101.54

-4.38

2.82

19.20

7.97

-12.37

Nov-09

9
10107.8

17119.03

10.36

0.10

107.38

0.01

1.06

Dec-09

7
10142.0

16719.83

0.85

-2.33

0.72

5.44

-1.98

Dec-09

5
10494.7

17360.61

0.34

3.83

0.11

14.69

1.30

Dec-09

1
10546.4

17464.81

3.48

0.60

12.09

0.36

2.09

Dec-09

17540.29

0.49

0.43

0.24

0.19

0.21

21.19

68.71

709.8

1132.78

11.27

TOTAL

42

20
15
10
5

NIKKEI

Column1

-5
-10
-15

FIGURE 6.2 : Determination of Nikkei percentage change & Sensex percentage

change.

INTERPRETION :X = % Return on Nikkei closing price

Y = % return on Sensex closing price

r=

51(11.27) (21.19) (68.71)

51(709.8) (21.19)2

51(1132.78) (68.71)2

-881.19
43550.80

- 0.020

INTERPRETION :It is interpreted from the above calculation, that X i.e. percentage change in Nikkei
and Y i.e. percentage change in sensex is negatively co-related to each other. The

43

correlation between these two variables is - 0.020 in 2009. This means that when X
increased by 1 %, Y decreased by -0.020 %.
3.

CORRELATION BETWEEN NIKKEI & SENSEX FOR

2010(WEEKLY)
TABLE 6.2 : Co-relation between Nikkei & Sensex on 2010.

MONTH

NIKKEI
10798.3

SENSEX X

X2

Y2

X*Y

Jan-10
Jan-10

2
10982.1
10590.5

17554.3
16859.68

1.70

-3.96

2.90

15.66

-6.73

Jan-10

5
10198.0

16357.96

-3.57

-2.98

12.71

8.86

10.61

Jan-10

4
10057.0

15790.93

-3.71

-3.47

13.74

12.02

12.85

Feb-10

9
10092.1

16152.59

-1.38

2.29

1.91

5.25

-3.17

Feb-10

9
10123.5

16191.63

0.35

0.24

0.12

0.06

0.08

Feb-10

8
10126.0

16429.55

0.31

1.47

0.10

2.16

0.46

Feb-10

3
10368.9

16994.49

0.02

3.44

0.00

11.82

0.08

Mar-10

6
10751.2

17166.62

2.40

1.01

5.76

1.03

2.43

Mar-10

6
10824.7

17578.23

3.69

2.40

13.59

5.75

8.84

Mar-10

2
10996.3

17644.76

0.68

0.38

0.47

0.14

0.26

Mar-10
Mar-10
Apr-10
Apr-10

7
11286.09
11204.34
11102.18
10914.4

17692.62
17933.14
17591.18
17694.2

1.59
2.63
-0.72
-0.91

0.27
1.36
-1.91
0.59

2.51
6.94
0.52
0.83

0.07
1.85
3.64
0.34

0.43
3.58
1.38
-0.53

Apr-10
Apr-10

6
11057.4
10364.5

17558.71
16769.11

-1.69
1.31

-0.77
-4.50

2.86
1.72

0.59
20.22

1.29
-5.89

May-10

9
10462.5

16994.6

-6.27

1.34

39.26

1.81

-8.43

May-10
May-10

1
9784.54

16445.61
16863.06

0.94
-6.48

-3.23
2.54

0.89
41.99

10.44
6.44

-3.05
-16.45
44

May-10
May-10
Jun-10
Jun-10
Jun-10
Jun-10
Jul-10
Jul-10
Jul-10
Jul-10
Aug-10
Aug-10
Aug-10
Aug-10
Aug-10
Sep-10
Sep-10
Sep-10
Sep-10
Oct-10
Oct-10
Oct-10
Oct-10
Nov-10
Nov-10

9762.98
9901.19
9705.25
9995.02
9737.48
9203.71
9585.32
9408.36
9430.96
9537.3
9642.12
9253.46
9179.38
8991.06
9114.13
9239.17
9626.09
9471.67
9404.23
9588.88
9500.25
9426.71
9202.45
9625.99
9724.81
10022.3

17117.69
17064.95
17570.82
17574.53
17460.95
17833.54
17955.82
18130.98
17868.29
18143.99
18167.03
18401.82
17998.41
18221.43
18799.66
19594.75
20045.18
20445.04
20250.26
20125.05
20165.86
20032.34
21004.96
20156.89
19585.44

-0.22
1.42
-1.98
2.99
-2.58
-5.48
4.15
-1.85
0.24
1.13
1.10
-4.03
-0.80
-2.05
1.37
1.37
4.19
-1.60
-0.71
1.96
-0.92
-0.77
-2.38
4.60
1.03

1.51
-0.31
2.96
0.02
-0.65
2.13
0.69
0.98
-1.45
1.54
0.13
1.29
-2.19
1.24
3.17
4.23
2.30
1.99
-0.95
-0.62
0.20
-0.66
4.86
-4.04
-2.84

0.05
2.00
3.92
8.91
6.64
30.05
17.19
3.41
0.06
1.27
1.21
16.25
0.64
4.21
1.87
1.88
17.54
2.57
0.51
3.86
0.85
0.60
5.66
21.18
1.05

2.28
0.09
8.79
0.00
0.42
4.55
0.47
0.95
2.10
2.38
0.02
1.67
4.81
1.54
10.07
17.89
5.28
3.98
0.91
0.38
0.04
0.44
23.57
16.30
8.04

-0.33
-0.44
-5.87
0.06
1.67
-11.70
2.84
-1.80
-0.35
1.74
0.14
-5.21
1.76
-2.54
4.34
5.80
9.63
-3.20
0.68
-1.21
-0.19
0.51
-11.55
-18.58
-2.91

Nov-10

9
10039.5

19136.61

3.06

-2.29

9.36

5.25

-7.01

Nov-10

6
10178.3

19966.93

0.17

4.34

0.03

18.83

0.74

Nov-10
Dec-10

2
10211.95
10303.8

19508.89
19864.85

1.38
0.33

-2.29
1.82

1.91
0.11

5.26
3.33

-3.17
0.60

Dec-10

3
10279.1

20073.66

0.90

1.05

0.81

1.10

0.95

Dec-10

9
10228.9

20509.09

-0.24

2.17

0.06

4.71

-0.52

Dec-10
TOTAL

19691.81

-0.49
-3.83

-3.98
12.89

0.24
314.72

15.88
279.48

1.95
-45.31

45

6
4
2
0

NIKKEI
Column1

-2
-4
-6
-8

FIGURE 6.3 : Determination of Nikkei percentage change & Sensex percentage

change.

INTERPRETATION :X = % Return on Nikkei closing price

Y = % return on Sensex closing price

r=

51(-45.31) (-3.83) (12.89)

51(314.72) (-3.83)2

51(279.48) (12.89)2

-2261.44
15030.98

- 0.15

INTERPRETION :It is interpreted from the above calculation, that X i.e. percentage change in Nikkei
and Y i.e. percentage change in sensex is negatively co-related to each other. The
correlation between these two variables is - 0.15 in 2010. This means that when X
increased by 1 %, Y decreased by -0.15 %.
46

4.

CORRELATION BETWEEN NIKKEI & SENSEX FOR

2011(WEEKLY)
TABLE 6.3 : Co-relation between Nikkei & Sensex on 2011.

MONTH

NIKKEI
10541.0

SENSEX X

X2

Y2

X*Y

Jan-11

4
10499.0

18860.44

Jan-11

4
10274.5

19007.53

-0.40

0.78

0.16

0.61

-0.31

Jan-11

2
10360.3

18395.97

-2.14

-3.22

4.57

10.35

6.88

Jan-11

4
10543.5

18008.15

0.84

-2.11

0.70

4.44

-1.76

Jan-11

2
10605.6

17728.61

1.77

-1.55

3.13

2.41

-2.74

Feb-11
Feb-11

5
10842.8
10526.7

18211.52
17700.91

0.59
2.24

2.72
-2.80

0.35
5.00

7.42
7.86

1.61
-6.27

Feb-11

6
10693.6

18486.45

-2.91

4.44

8.50

19.69

-12.94

Feb-11

6
10254.4

18174.09

1.59

-1.69

2.51

2.85

-2.68

Mar-11
Mar-11
Mar-11
Mar-11
Apr-11
Apr-11
Apr-11
Apr-11
May-11
May-11
May-11
May-11
May-11
Jun-11
Jun-11
Jun-11
Jun-11
Jul-11

3
9206.75
9536.13
9708.39
9768.08
9591.52
9682.21
9849.74
9859.2
9648.77
9607.08
9521.94
9492.21
9514.44
9351.4
9678.71
9868.07
10137.7

17878.81
18815.64
19420.39
19451.45
19386.82
19602.23
19135.96
18518.81
18531.28
18326.09
18266.1
18376.48
18268.54
17870.53
18240.68
18762.8
18858.04
18561.92

-4.11
-10.22
3.58
1.81
0.61
-1.81
0.95
1.73
0.10
-2.13
-0.43
-0.89
-0.31
0.23
-1.71
3.50
1.96
2.73

-1.62
5.24
3.21
0.16
-0.33
1.11
-2.38
-3.23
0.07
-1.11
-0.33
0.60
-0.59
-2.18
2.07
2.86
0.51
-1.57

16.87
104.38
12.80
3.26
0.38
3.27
0.89
2.99
0.01
4.56
0.19
0.79
0.10
0.05
2.94
12.25
3.83
7.47

2.64
27.46
10.33
0.03
0.11
1.23
5.66
10.40
0.00
1.23
0.11
0.37
0.35
4.75
4.29
8.19
0.26
2.47

6.67
-53.54
11.50
0.29
-0.20
-2.01
-2.25
-5.58
0.01
2.36
0.14
-0.54
0.18
-0.51
-3.55
10.02
0.99
-4.29
47

Jul-11
Jul-11
Jul-11
Aug-11
Aug-11
Aug-11
Aug-11
Aug-11
Sep-11
Sep-11
Sep-11
Sep-11
Oct-11
Oct-11
Oct-11
Oct-11
Oct-11
Nov-11
Nov-11
Nov-11
Nov-11
Dec-11
Dec-11
Dec-11
Dec-11
TOTAL

3
9974.47
10132.11
9833.03
9299.88
8963.72
8719.24
8797.78
8950.74
8737.66
8864.16
8560.26
8700.29
8605.62
8747.96
8678.89
9050.47
8801.4
8514.47
8374.91
8160.01
8643.75
8536.46
8401.72
8395.16
8455.35

18722.3
18197.2
17305.87
16839.63
16141.67
15848.83
16821.46
16866.97
16933.83
16162.06
16453.76
16232.54
17082.69
16785.64
17804.8
17562.61
17192.82
16371.51
15695.43
16846.83
16213.46
15491.35
15738.7
15454.92
15867.73

-1.61
1.58
-2.95
-5.42
-3.61
-2.73
0.90
1.74
-2.38
1.45
-3.43
1.64
-1.09
1.65
-0.79
4.28
-2.75
-3.26
-1.64
-2.57
5.93
-1.24
-1.58
-0.08
0.72
-20.07

0.86
-2.80
-4.90
-2.69
-4.14
-1.81
6.14
0.27
0.40
-4.56
1.80
-1.34
5.24
-1.74
6.07
-1.36
-2.11
-4.78
-4.13
7.34
-3.76
-4.45
1.60
-1.80
2.67
-14.92

2.59
2.50
8.71
29.40
13.07
7.44
0.81
3.02
5.67
2.10
11.75
2.68
1.18
2.74
0.62
18.33
7.57
10.63
2.69
6.58
35.14
1.54
2.49
0.01
0.51
381.72

0.75
7.87
23.99
7.26
17.18
3.29
37.66
0.07
0.16
20.77
3.26
1.81
27.43
3.02
36.86
1.85
4.43
22.82
17.05
53.82
14.13
19.84
2.55
3.25
7.13
473.76

-1.39
-4.43
14.46
14.61
14.98
4.95
5.53
0.47
-0.94
-6.60
-6.19
-2.20
-5.70
-2.88
-4.79
-5.82
5.79
15.57
6.77
-18.82
-22.29
5.53
-2.52
0.14
1.92
-52.37

48

10
5
0

NIKKEI
Column1

-5
-10
-15

FIGURE 6.4 : Determination of Nikkei percentage change & Sensex percentage

change.

INTERPRETATION :X = % Return on Nikkei closing price

Y = % return on Sensex closing price

r=

51(-52.37) (-20.07) (-14.92)

51(381.72) (-20.07)2

51(473.76) (14.92)2

-2970.31
21467.74

- 0.14

INTERPRETION :It is interpreted from the above calculation, that X i.e. percentage change in Nikkei
and Y i.e. percentage change in sensex is negatively co-related to each other. The

49

correlation between these two variable is - 0.14 in 2011. This means that when X
increased by 1 % , Y decreased by -0.14 % .
5.

CORRELATION BETWEEN NIKKEI & SENSEX FOR 2012

(WEEKLY)
TABLE 6.4 : Co-relation between Nikkei & Sensex on 2011.

MONTH
Jan-12
Jan-12
Jan-12
Jan-12
Jan-12
Feb-12
Feb-12
Feb-12
Feb-12
Mar-12

NIKKEI
8390.35
8500.02
8766.36
8841.22
8831.93
8947.17
9384.17
9647.38
9777.03
9929.74
10129.8

SENSEX
16154.62
16739.01
17233.98
17604.96
17748.69
18289.35
17923.57
17636.8
17503.24
17466.2

X
1.31
3.13
0.85
-0.11
1.30
4.88
2.80
1.34
1.56

Y
3.62
2.96
2.15
0.82
3.05
-2.00
-1.60
-0.76
-0.21

X2

Mar-12
Mar-12

3
10011.47
10083.5

17361.74
17404.2

2.02
-1.17

Mar-12
Apr-12
Apr-12
Apr-12
Apr-12
May-12
May-12
May-12
May-12
May-12
Jun-12
Jun-12
Jun-12
Jun-12
Jul-12
Jul-12
Jul-12
Jul-12
Jul-12
Aug-12
Aug-12
Aug-12
Aug-12

6
9688.45
9637.99
9561.36
9520.89
9380.25
8953.31
8611.31
8580.39
8440.25
8459.26
8569.32
8798.35
9006.78
9020.75
8724.12
8669.87
8566.64
8555.11
8891.44
9162.5
9070.76
8839.91

17486.02
17094.51
17373.84
17134.25
16831.08
16292.98
16152.75
16217.82
15965.16
16718.87
16949.83
16972.51
17429.98
17521.12
17213.7
17158.44
16839.19
17197.93
17557.74
17691.08
17783.21
17380.75
17683.73

0.72
-3.92
-0.52
-0.80
-0.42
-1.48
-4.55
-3.82
-0.36
-1.63
0.23
1.30
2.67
2.37
0.16
-3.29
-0.62
-1.19
-0.13
3.93
3.05
-1.00
-2.54

1.71
9.82
0.73
0.01
1.70
23.86
7.87
1.81
2.44

Y2
13.09
8.74
4.63
0.67
9.28
4.00
2.56
0.57
0.04

X*Y
4.73
9.27
1.84
-0.09
3.97
-9.77
-4.49
-1.02
-0.33

-0.60
0.24

4.06
1.37

0.36
0.06

-1.21
-0.29

0.47
-2.24
1.63
-1.38
-1.77
-3.20
-0.86
0.40
-1.56
4.72
1.38
0.13
2.70
0.52
-1.75
-0.32
-1.86
2.13
2.09
0.76
0.52
-2.26
1.74

0.52
15.35
0.27
0.63
0.18
2.18
20.72
14.59
0.13
2.67
0.05
1.69
7.14
5.61
0.02
10.81
0.39
1.42
0.02
15.46
9.29
1.00
6.48

0.22
5.01
2.67
1.90
3.13
10.22
0.74
0.16
2.43
22.29
1.91
0.02
7.26
0.27
3.08
0.10
3.46
4.54
4.38
0.58
0.27
5.12
3.04

0.34
8.77
-0.85
1.10
0.75
4.72
3.92
-1.54
0.56
-7.71
0.31
0.17
7.20
1.24
-0.27
1.06
1.16
-2.54
-0.28
2.99
1.59
2.27
-4.44
50

Sep-12
Sep-12
Sep-12
Sep-12
Oct-12
Oct-12
Oct-12
Oct-12
Oct-12
Nov-12
Nov-12
Nov-12
Nov-12
Dec-12
Dec-12
Dec-12
Dec-12
TOTAL

8871.65
9159.39
9110
8870.16
8863.3
8534.12
9002.68
8933.06
9051.22
8757.6
9024.16
9366.8
9446.01
9527.39
9737.56
9940.06
10688.11

18464.27
18752.83
18762.74
18938.46
18675.18
18682.31
18625.34
18755.45
18683.68
18309.37
18506.57
19339.9
19424.1
19317.25
19242
19444.84
19784.08

0.36
3.24
-0.54
-2.63
-0.08
-3.71
5.49
-0.77
1.32
-3.24
3.04
3.80
0.85
0.86
2.21
2.08
7.53
25.88

4.41
1.56
0.05
0.94
-1.39
0.04
-0.30
0.70
-0.38
-2.00
1.08
4.50
0.44
-0.55
-0.39
1.05
1.74
21.16

0.13
10.52
0.29
6.93
0.01
13.79
30.14
0.60
1.75
10.52
9.26
14.42
0.72
0.74
4.87
4.32
56.63
337.64

19.48
2.44
0.00
0.88
1.93
0.00
0.09
0.49
0.15
4.01
1.16
20.28
0.19
0.30
0.15
1.11
3.04
182.5

1.58
5.07
-0.03
-2.47
0.11
-0.14
-1.67
-0.54
-0.51
6.50
3.28
17.10
0.37
-0.47
-0.86
2.19
13.13
65.77

10
8
6
4
2

NIKKEI
Column1

0
-2
-4
-6

FIGURE 6.5 : Determination of Nikkei percentage change & Sensex percentage

change.

INTERPRETATION :X = % Return on Nikkei closing price

51

Y = % return on Sensex closing price

r=

51(65.77) (25.88) (21.16)

51(337.64) (25.88)2

51(182.5) (21.16)2

2857.65
12109.82

0.24

INTERPRETION :It is interpreted from the above calculation, that X i.e. percentage change in Nikkei
and Y i.e. percentage change in sensex is positive co-related to each other. The
correlation between these two variable is 0.24 in 2012. This means that when X
increased by 1 % , Y increase by 0.24 % .

B. CORRELATION BETWEEN NIKKEI & NIFTY

1. CORRELATION BETWEEN NIKKEI & NIFTY FOR 2008
(WEEKLY)
TABLE 6.5 : Co-relation between Nikkei & Nifty on 2008.
MONTH
Jan-08

NIKKEI
14110.79
13861.2

SENSEX X
5705.3
-

Y
-

X2

Jan-08

9
13629.1

5383.35

-1.77

Jan-08

6
13497.1

5317.25

Jan-08

6
13017.2

Feb-08
Feb-08

4
13622.5

Y2
-

X*Y
-

-5.64

3.13

31.84

9.98

-1.67

-1.23

2.80

1.51

2.06

5120.35

-0.97

-3.70

0.94

13.71

3.59

5302.9
5110.75

-3.56
4.65

3.57
-3.62

12.64
21.62

12.71
13.13

-12.68
-16.85
52

6
13500.4
Feb-08

6
13603.0

5223.5

-0.90

2.21

0.80

4.87

-1.98

Feb-08
Mar-08
Mar-08

2
12782.8
12241.6
12482.5

4771.6
4745.8
4573.95

0.76
-6.03
-4.23

-8.65
-0.54
-3.62

0.58
36.36
17.93

74.84
0.29
13.11

-6.57
3.26
15.33

Mar-08

7
12820.4

4942

1.97

8.05

3.87

64.75

15.84

Mar-08

7
13293.2

4647

2.71

-5.97

7.33

35.63

-16.16

Mar-08

2
13323.7

4777.8

3.69

2.81

13.60

7.92

10.38

Apr-08

3
13476.4

4958.4

0.23

3.78

0.05

14.29

0.87

Apr-08

5
13863.4

5111.7

1.15

3.09

1.31

9.56

3.54

Apr-08

7
14049.2

5228.2

2.87

2.28

8.25

5.19

6.55

Apr-08

6
13655.3

4982.6

1.34

-4.70

1.80

22.07

-6.30

May-08

4
14219.4

5157.7

-2.80

3.51

7.86

12.35

-9.85

May-08
May-08

8
14012.2
14338.5

4946.55
4870.1

4.13
-1.46

-4.09
-1.55

17.07
2.12

16.76
2.39

-16.91
2.25

May-08

4
14489.4

4627.8

2.33

-4.98

5.42

24.75

-11.59

Jun-08

4
13973.7

4517.1

1.05

-2.39

1.11

5.72

-2.52

Jun-08

3
13942.0

4347.55

-3.56

-3.75

12.67

14.09

13.36

Jun-08

8
13544.3

4136.65

-0.23

-4.85

0.05

23.53

1.10

Jun-08

6
13237.8

4016

-2.85

-2.92

8.14

8.51

8.32

Jun-08

9
13039.6

4049

-2.26

0.82

5.12

0.68

-1.86

Jul-08
Jul-08

9
12803.7
13334.7

4092.25
4311.85

-1.50
-1.81

1.07
5.37

2.24
3.28

1.14
28.80

-1.60
-9.71

Jul-08

4413.55

4.15

2.36

17.20

5.56

9.78
53

13094.5
Jul-08

9
13168.4

4529.5

-1.80

2.63

3.24

6.90

-4.73

Aug-08

1
13019.4

4430.7

0.56

-2.18

0.32

4.76

-1.23

Aug-08

1
12666.0

4327.45

-1.13

-2.33

1.28

5.43

2.64

Aug-08

4
13072.8

4360

-2.71

0.75

7.37

0.57

-2.04

Aug-08

7
12212.2

4352.3

3.21

-0.18

10.32

0.03

-0.57

Sep-08

3
12214.7

4228.45

-6.58

-2.85

43.34

8.10

18.73

Sep-08
Sep-08
Sep-08

6
11920.86
11893.16
10938.1

4245.25
3985.25
3818.3

0.02
-2.41
-0.23

0.40
-6.12
-4.19

0.00
5.79
0.05

0.16
37.51
17.55

0.01
14.74
0.97

Sep-08
Oct-08
Oct-08
Oct-08
Oct-08
Nov-08
Nov-08
Nov-08
Nov-08
Dec-08
Dec-08
Dec-08
Dec-08
Dec-08
Total

4
8276.43
8693.82
7649.08
8576.98
8583
8462.39
7910.79
8512.27
7917.51
8235.87
8588.52
8739.52
8859.56

3279.95
3074.35
2584
2885.6
2973
2810.35
2693.45
2755.1
2714.4
2921.35
3077.5
2857.25
3046.75
2873

-8.03
-24.33
5.04
-12.02
12.13
0.07
-1.41
-6.52
7.60
-6.99
4.02
4.28
1.76
1.37
-38.67

-14.10
-6.27
-15.95
11.67
3.03
-5.47
-4.16
2.29
-1.48
7.62
5.35
-7.16
6.63
-5.70
-61.05

64.48
592.15
25.43
144.41
147.16
0.00
1.97
42.49
57.81
48.82
16.17
18.33
3.09
1.89
1451.2

198.79
39.29
254.39
136.23
9.17
29.93
17.30
5.24
2.18
58.13
28.57
51.22
43.99
32.52
1457.66

113.22
152.54
-80.44
-140.26
36.74
-0.38
5.85
-14.92
-11.23
-53.27
21.49
-30.64
11.66
-7.83
22.68

54

15
10
5
0
-5

NIKKEI
Column1

-10
-15
-20
-25
-30

FIGURE 6.6 : Determination of Nikkei percentage change & Nifty percentage

change.

INTERPRETATION :X = % Return on Nikkei closing price

Y = % return on Sensex closing price

r=

51(22.68) (-38.67) (-61.05)

51(1451.2) (-38.67)2

51(1457.66) (-61.05)2

-1204.12
71558.43

-0.016

55

INTERPRETION :It is interpreted from the above calculation, that X i.e. percentage change in Nikkei
and Y i.e. percentage change in sensex is negatively co-related to each other. The
correlation between these two variable is - 0.016 in 2008. This means that when X
increased by 1 % , Y decreased by -0.016 % .

56

2. CORRELATION BETWEEN NIKKEI & NIFTY FOR 2009

(WEEKLY)
TABLE 6.6 : Co-relation between Nikkei & Nifty on 2009.
MONTH
Jan-09
Jan-09
Jan-09
Jan-09
Feb-09
Feb-09
Feb-09
Feb-09
Mar-09
Mar-09
Mar-09
Mar-09
Mar-09
Apr-09
Apr-09
Apr-09
Apr-09
May-09
May-09
May-09
May-09
Jun-09
Jun-09
Jun-09
Jun-09
Jun-09
Jul-09
Jul-09
Jul-09
Jul-09
Aug-09
Aug-09
Aug-09
Aug-09
Aug-09
Sep-09
Sep-09
Sep-09
Sep-09
Oct-09

NIKKEI
8836.8
8230.15
7745.25
7994.05
8076.62
7779.4
7416.38
7568.42
7173.1
7569.28
7945.96
8626.97
8749.84
8964.11
8907.58
8707.99
8977.37
9432.83
9265.02
9225.81
9522.5
9768.01
10135.82
9786.26
9877.39
9816.07
9287.28
9395.32
9944.55
10356.83
10412.09
10597.33
10238.2
10534.14
10187.11
10444.33
10370.54
10265.98
9731.87
10016.39

NIFTY
2828.45
2678.55
2874.8
2843.1
2948.35
2736.45
2763.65
2620.15
2719.25
2807.05
3108.65
3211.05
3342.05
3384.4
3480.75
3473.95
3620.7
3671.65
4238.5
4448.95
4586.9
4583.4
4313.6
4375.5
4424.25
4003.9
4374.95
4568.55
4636.45
4481.4
4580.05
4528.8
4732.35
4680.4
4829.55
4976.05
4958.95
5083.4
4945.2
5142.15

X
-6.87
-5.89
3.21
1.03
-3.68
-4.67
2.05
-5.22
5.52
4.98
8.57
1.42
2.45
-0.63
-2.24
3.09
5.07
-1.78
-0.42
3.22
2.58
3.77
-3.45
0.93
-0.62
-5.39
1.16
5.85
4.15
0.53
1.78
-3.39
2.89
-3.29
2.52
-0.71
-1.01
-5.20
2.92

Y
-5.30
7.33
-1.10
3.70
-7.19
0.99
-5.19
3.78
3.23
10.74
3.29
4.08
1.27
2.85
-0.20
4.22
1.41
15.44
4.97
3.10
-0.08
-5.89
1.43
1.11
-9.50
9.27
4.43
1.49
-3.34
2.20
-1.12
4.49
-1.10
3.19
3.03
-0.34
2.51
-2.72
3.98

X2
47.13
34.71
10.32
1.07
13.54
21.78
4.20
27.28
30.51
24.76
73.45
2.03
6.00
0.40
5.02
9.57
25.74
3.16
0.18
10.34
6.65
14.18
11.89
0.87
0.39
29.02
1.35
34.17
17.19
0.28
3.17
11.48
8.36
10.85
6.38
0.50
1.02
27.07
8.55

Y2
28.09
53.68
1.22
13.70
51.65
0.99
26.96
14.31
10.43
115.44
10.85
16.64
1.61
8.10
0.04
17.84
1.98
238.35
24.65
9.61
0.01
34.65
2.06
1.24
90.27
85.88
19.58
2.21
11.18
4.85
1.25
20.20
1.21
10.16
9.20
0.12
6.30
7.39
15.86

X*Y
36.38
-43.17
-3.54
3.82
26.45
-4.64
-10.64
-19.76
17.83
53.47
28.23
5.81
3.10
-1.80
0.44
13.07
7.14
-27.47
-2.10
9.97
-0.20
-22.17
-4.95
1.04
5.90
-49.92
5.15
8.69
-13.86
1.17
-1.99
-15.23
-3.17
-10.50
7.66
0.24
-2.53
14.14
11.64
57

Oct-09
Oct-09
Oct-09
Nov-09
Nov-09
Nov-09
Nov-09
Nov-09
Dec-09
Dec-09
Dec-09
Dec-09
TOTAL

10257.56
10282.99
10034.74
9789.35
9770.31
9497.68
9081.52
10022.59
10107.87
10142.05
10494.71
10546.44

4997.05
4711.7
4796.15
4998.95
5052.45
4941.75
5108.9
5117.3
4987.7
5178.4
5201.05
5244.75

2.41
0.25
-2.41
-2.45
-0.19
-2.79
-4.38
10.36
0.85
0.34
3.48
0.49
21.19

-2.82
-5.71
1.79
4.23
1.07
-2.19
3.38
0.16
-2.53
3.82
0.44
0.84
66.94

5.80
0.06
5.83
5.98
0.04
7.79
19.20
107.38
0.72
0.11
12.09
0.24
709.8

7.96
32.61
3.21
17.88
1.15
4.80
11.44
0.03
6.41
14.62
0.19
0.71
1070.77

-6.79
-1.42
-4.33
-10.34
-0.21
6.11
-14.82
1.70
-2.15
1.29
1.52
0.41
-5.33

20
15
10
5

NIKKEI

Column1

-5
-10
-15

FIGURE 6.7 : Determination of Nikkei percentage change & Nifty percentage

change.

INTERPRETATION :X = % Return on Nikkei closing price

Y = % return on Sensex closing price

58

r=

51(-5.33) (21.19) (66.94)

51(709.8) (21.19)2

51(1070.77) (66.94)2

-1690.28
42333.12

-0.038

INTERPRETION :It is interpreted from the above calculation, that X i.e. percentage change in Nikkei
and Y i.e. percentage change in sensex is negatively co-related to each other. The
correlation between these two variable is - 0.038 in 2009. This means that when X
increased by 1 % , Y decreased by -0.038 % .

3. CORRELATION BETWEEN NIKKEI & NIFTY FOR 2010

(WEEKLY)
TABLE 6.7 : Co-relation between Nikkei & Nifty on 2010.
MONTH

NIKKEI

NIFTY

Jan-10

10798.32

5252.2

Jan-10

10982.1

5036

1.70

Jan-10

10590.55

4882.05

Jan-10

10198.04

Feb-10

X2

Y2

X*Y

-4.12

2.90

16.94

-7.01

-3.57

-3.06

12.71

9.35

10.90

4718.65

-3.71

-3.35

13.74

11.20

12.40

10057.09

4826.85

-1.38

2.29

1.91

5.26

-3.17

Feb-10

10092.19

4844.9

0.35

0.37

0.12

0.14

0.13

Feb-10

10123.58

4922.3

0.31

1.60

0.10

2.55

0.50

Feb-10

10126.03

5088.7

0.02

3.38

0.00

11.43

0.08

Mar-10

10368.96

5137

2.40

0.95

5.76

0.90

2.28

Mar-10

10751.26

5262.8

3.69

2.45

13.59

6.00

9.03

Mar-10

10824.72

5282

0.68

0.36

0.47

0.13

0.25

Mar-10

10996.37

5290.5

1.59

0.16

2.51

0.03

0.26

Mar-10

11286.09

5361.75

2.63

1.35

6.94

1.81

3.55

Apr-10

11204.34

5262.6

-0.72

-1.85

0.52

3.42

1.34

Apr-10

11102.18

5304.1

-0.91

0.79

0.83

0.62

-0.72
59

Apr-10

10914.46

5278

-1.69

-0.49

2.86

0.24

0.83

Apr-10

11057.4

5018.05

1.31

-4.93

1.72

24.26

-6.45

May-10

10364.59

5093.5

-6.27

1.50

39.26

2.26

-9.42

May-10

10462.51

4931.15

0.94

-3.19

0.89

10.16

-3.01

May-10

9784.54

5066.55

-6.48

2.75

41.99

7.54

-17.79

May-10

9762.98

5135.5

-0.22

1.36

0.05

1.85

-0.30

May-10

9901.19

5119.35

1.42

-0.31

2.00

0.10

-0.45

Jun-10

9705.25

5262.6

-1.98

2.80

3.92

7.83

-5.54

Jun-10

9995.02

5269.05

2.99

0.12

8.91

0.02

0.37

Jun-10

9737.48

5237.1

-2.58

-0.61

6.64

0.37

1.56

Jun-10

9203.71

5352.45

-5.48

2.20

30.05

4.85

-12.07

Jul-10

9585.32

5393.9

4.15

0.77

17.19

0.60

3.21

Jul-10

9408.36

5449.1

-1.85

1.02

3.41

1.05

-1.89

Jul-10

9430.96

5367.6

0.24

-1.50

0.06

2.24

-0.36

Jul-10

9537.3

5439.25

1.13

1.33

1.27

1.78

1.51

Aug-10

9642.12

5452.1

1.10

0.24

1.21

0.06

0.26

Aug-10

9253.46

5530.65

-4.03

1.44

16.25

2.08

-5.81

Aug-10

9179.38

5408.7

-0.80

-2.20

0.64

4.86

1.77

Aug-10

8991.06

5479.4

-2.05

1.31

4.21

1.71

-2.68

Aug-10

9114.13

5640.05

1.37

2.93

1.87

8.60

4.01

Sep-10

9239.17

5884.95

1.37

4.34

1.88

18.85

5.96

Sep-10

9626.09

6018.3

4.19

2.27

17.54

5.13

9.49

Sep-10

9471.67

6143.4

-1.60

2.08

2.57

4.32

-3.33

Sep-10

9404.23

6103.45

-0.71

-0.65

0.51

0.42

0.46

Oct-10

9588.88

6062.65

1.96

-0.67

3.86

0.45

-1.31

Oct-10

9500.25

6066.05

-0.92

0.06

0.85

0.00

-0.05

Oct-10

9426.71

6017.7

-0.77

-0.80

0.60

0.64

0.62

Oct-10

9202.45

6312.45

-2.38

4.90

5.66

23.99

-11.65

Nov-10

9625.99

6071.65

4.60

-3.81

21.18

14.55

-17.56

Nov-10

9724.81

5890.3

1.03

-2.99

1.05

8.92

-3.07

Nov-10

10022.39

5751.95

3.06

-2.35

9.36

5.52

-7.19
60

Nov-10

10039.56

5992.8

0.17

4.19

0.03

17.53

0.72

Nov-10

10178.32

5857.35

1.38

-2.26

1.91

5.11

-3.12

Dec-10

10211.95

5948.75

0.33

1.56

0.11

2.43

0.52

Dec-10

10303.83

6011.6

0.90

1.06

0.81

1.12

0.95

Dec-10

10279.19

6134.5

-0.24

2.04

0.06

4.18

-0.49

Dec-10

10228.92

5904.6

-0.49

-3.75

0.24

14.04

1.83

-3.82

13.08

314.72

279.44

-49.65

TOTAL

6
4
2
0

NIKKEI
Column1

-2
-4
-6
-8

FIGURE 6.8 : Determination of Nikkei percentage change & Nifty percentage

change.

INTERPRETATION :X = % Return on Nikkei closing price

Y = % return on Sensex closing price

r=

51(-49.65) (-3.82) (13.08)

61

51(314.72) (-3.82)2
=

51(279.44) (13.08)2

-2482.19
15625.92

- 0.15

INTERPRETION :It is interpreted from the above calculation, that X i.e. percentage change in Nikkei
and Y i.e. percentage change in sensex is negatively co-related to each other. The
correlation between these two variable is - 0.17 in 2010. This means that when X
increased by 1 % , Y decreased by -0.17 % .

4. CORRELATION BETWEEN NIKKEI & NIFTY FOR 2011

(WEEKLY)
TABLE 6.8 : Co-relation between Nikkei & Nifty on 2011.
MONTH
Jan-11
Jan-11
Jan-11
Jan-11
Jan-11
Feb-11
Feb-11
Feb-11
Feb-11
Mar-11
Mar-11
Mar-11
Mar-11
Apr-11
Apr-11
Apr-11
Apr-11
May-11
May-11
May-11
May-11
May-11
Jun-11
Jun-11

NIKKEI
10541.04
10499.04
10274.52
10360.34
10543.52
10605.65
10842.8
10526.76
10693.66
10254.43
9206.75
9536.13
9708.39
9768.08
9591.52
9682.21
9849.74
9859.2
9648.77
9607.08
9521.94
9492.21
9514.44
9351.4

NIFTY
5654.55
5696.5
5512.15
5395.75
5310
5458.95
5303.55
5538.75
5445.45
5373.7
5654.25
5826.05
5842
5824.55
5884.7
5749.5
5551.45
5544.75
5486.35
5476.1
5516.75
5485.8
5366.4
5471.25

X
-0.40
-2.14
0.84
1.77
0.59
2.24
-2.91
1.59
-4.11
-10.22
3.58
1.81
0.61
-1.81
0.95
1.73
0.10
-2.13
-0.43
-0.89
-0.31
0.23
-1.71

Y
0.74
-3.24
-2.11
-1.59
2.81
-2.85
4.43
-1.68
-1.32
5.22
3.04
0.27
-0.30
1.03
-2.30
-3.44
-0.12
-1.05
-0.19
0.74
-0.56
-2.18
1.95

X2
0.16
4.57
0.70
3.13
0.35
5.00
8.50
2.51
16.87
104.38
12.80
3.26
0.38
3.27
0.89
2.99
0.01
4.56
0.19
0.79
0.10
0.05
2.94

Y2
0.55
10.47
4.46
2.53
7.87
8.10
19.67
2.84
1.74
27.26
9.23
0.07
0.09
1.07
5.28
11.87
0.01
1.11
0.03
0.55
0.31
4.74
3.82

X*Y
-0.30
6.92
-1.76
-2.81
1.65
-6.37
-12.93
-2.67
5.41
-53.34
10.87
0.49
-0.18
-1.87
-2.17
-5.96
-0.01
2.25
0.08
-0.66
0.18
-0.51
-3.35
62

Jun-11
Jun-11
Jul-11
Jul-11
Jul-11
Jul-11
Aug-11
Aug-11
Aug-11
Aug-11
Aug-11
Sep-11
Sep-11
Sep-11
Sep-11
Oct-11
Oct-11
Oct-11
Oct-11
Oct-11
Nov-11
Nov-11
Nov-11
Nov-11
Dec-11
Dec-11
Dec-11
Dec-11
TOTAL

9678.71
9868.07
10137.73
9974.47
10132.11
9833.03
9299.88
8963.72
8719.24
8797.78
8950.74
8737.66
8864.16
8560.26
8700.29
8605.62
8747.96
8678.89
9050.47
8801.4
8514.47
8374.91
8160.01
8643.75
8536.46
8401.72
8395.16
8455.35

5627.2
5660.65
5581.1
5633.95
5482
5211.25
5072.95
4845.65
4747.8
5040
5059.45
5084.25
4867.75
4943.25
4888.05
5132.3
5049.95
5360.7
5284.2
5168.85
4905.8
4710.05
5050.15
4866.7
4651.6
4714
4624.3
4754.1

3.50
1.96
2.73
-1.61
1.58
-2.95
-5.42
-3.61
-2.73
0.90
1.74
-2.38
1.45
-3.43
1.64
-1.09
1.65
-0.79
4.28
-2.75
-3.26
-1.64
-2.57
5.93
-1.24
-1.58
-0.08
0.72
-20.07

2.85
0.59
-1.41
0.95
-2.70
-4.94
-2.65
-4.48
-2.02
6.15
0.39
0.49
-4.26
1.55
-1.12
5.00
-1.60
6.15
-1.43
-2.18
-5.09
-3.99
7.22
-3.63
-4.42
1.34
-1.90
2.81
-15.03

12.25
3.83
7.47
2.59
2.50
8.71
29.40
13.07
7.44
0.81
3.02
5.67
2.10
11.75
2.68
1.18
2.74
0.62
18.33
7.57
10.63
2.69
6.58
35.14
1.54
2.49
0.01
0.51
318.72

8.12
0.35
1.97
0.90
7.27
24.39
7.04
20.08
4.08
37.88
0.15
0.24
18.13
2.41
1.25
24.97
2.57
37.87
2.04
4.77
25.90
15.92
52.14
13.20
19.53
1.80
3.62
7.88
470.14

9.98
1.16
-3.84
-1.52
-4.26
14.58
14.39
16.20
5.51
5.54
0.67
-1.17
-6.16
-5.32
-1.83
-5.44
-2.65
-4.86
-6.11
6.01
16.59
6.54
-18.53
-21.53
5.49
-2.12
0.15
2.01
-47.56

63

10
5
0

NIKKEI
Series 3

-5
-10
-15

FIGURE 6.9 : Determination of Nikkei percentage change & Nifty percentage

change.

INTERPRETATION :X = % Return on Nikkei closing price

Y = % return on Sensex closing price

r=

51(-47.56) (-20.07) (-15.03)

51(381.72) (-20.07)2

51(470.14) (-15.03)2

-2727.21
21279.5

- 0.13

INTERPRETION :It is interpreted from the above calculation, that X i.e. percentage change in Nikkei
and Y i.e. percentage change in sensex is negatively co-related to each other. The
correlation between these two variable is -0.13 in 2011. This means that when X
increased by 1 % , Y decreased by -0.13 % .
64

5. CORRELATION BETWEEN NIKKEI & NIFTY FOR 2012

(WEEKLY)
TABLE 6.9 : Co-relation between Nikkei & Nifty on 2012.
MONTH
Jan-12
Jan-12
Jan-12
Jan-12
Jan-12
Feb-12
Feb-12
Feb-12
Feb-12
Mar-12
Mar-12
Mar-12
Mar-12
Apr-12
Apr-12
Apr-12
Apr-12
May-12
May-12
May-12
May-12
May-12
Jun-12
Jun-12
Jun-12
Jun-12
Jul-12
Jul-12
Jul-12
Jul-12
Jul-12
Aug-12
Aug-12
Aug-12
Aug-12
Sep-12
Sep-12
Sep-12
Sep-12
Oct-12

NIKKEI
8390.35
8500.02
8766.36
8841.22
8831.93
8947.17
9384.17
9647.38
9777.03
9929.74
10129.83
10011.47
10083.56
9688.45
9637.99
9561.36
9520.89
9380.25
8953.31
8611.31
8580.39
8440.25
8459.26
8569.32
8798.35
9006.78
9020.75
8724.12
8669.87
8566.64
8555.11
8891.44
9162.5
9070.76
8839.91
8871.65
9159.39
9110
8870.16
8863.3

NIFTY
4866
5048.6
5204.7
5325.85
5381.6
5564.3
5429.3
5359.35
5333.55
5317.9
5278.2
5295.55
5322.9
5207.45
5290.85
5190.6
5086.85
4928.9
4891.45
4920.4
4841.6
5068.35
5139.05
5146.05
5278.9
5316.95
5227.25
5205.1
5099.85
5215.7
5320.4
5366.3
5386.7
5258.5
5342.1
5577.65
5691.15
5703.3
5746.95
5676.05

X
1.31
3.13
0.85
-0.11
1.30
4.88
2.80
1.34
1.56
2.02
-1.17
0.72
-3.92
-0.52
-0.80
-0.42
-1.48
-4.55
-3.82
-0.36
-1.63
0.23
1.30
2.67
2.37
0.16
-3.29
-0.62
-1.19
-0.13
3.93
3.05
-1.00
-2.54
0.36
3.24
-0.54
-2.63
-0.08

Y
3.75
3.09
2.33
1.05
3.39
-2.43
-1.29
-0.48
-0.29
-0.75
0.33
0.52
-2.17
1.60
-1.89
-2.00
-3.11
-0.76
0.59
-1.60
4.68
1.39
0.14
2.58
0.72
-1.69
-0.42
-2.02
2.27
2.01
0.86
0.38
-2.38
1.59
4.41
2.03
0.21
0.77
-1.23

X2
1.71
9.82
0.73
0.01
1.70
23.86
7.87
1.81
2.44
4.06
1.37
0.52
15.35
0.27
0.63
0.18
2.18
20.72
14.59
0.13
2.67
0.05
1.69
7.14
5.61
0.02
10.81
0.39
1.42
0.02
15.46
9.29
1.00
6.48
0.13
10.52
0.29
6.93
0.01

Y2
14.08
9.56
5.42
1.10
11.53
5.89
1.66
0.23
0.09
0.56
0.11
0.27
4.70
2.56
3.59
4.00
9.64
0.58
0.35
2.56
21.93
1.95
0.02
6.66
0.52
2.85
0.18
4.09
5.16
4.03
0.74
0.14
5.66
2.53
19.44
4.14
0.05
0.59
1.52

X*Y
4.90
9.69
1.99
-0.11
4.43
-11.85
-3.61
-0.65
-0.46
-1.50
-0.38
0.37
8.50
-0.83
1.51
0.85
4.59
3.46
-2.26
0.58
-7.65
0.31
0.18
6.90
1.71
-0.26
1.39
1.26
-2.70
-0.27
3.39
1.16
2.38
-4.05
1.58
6.60
-0.12
-2.01
0.10
65

Oct-12
Oct-12
Oct-12
Oct-12
Nov-12
Nov-12
Nov-12
Nov-12
Dec-12
Dec-12
Dec-12
Dec-12
TOTAL

8534.12
9002.68
8933.06
9051.22
8757.6
9024.16
9366.8
9446.01
9527.39
9737.56
9940.06
10688.11

5684.25
5664.3
5697.7
5686.25
5574.05
5626.6
5879.85
5907.4
5879.6
5847.7
5908.35
6016.15

-3.71
5.49
-0.77
1.32
-3.24
3.04
3.80
0.85
0.86
2.21
2.08
7.53
25.88

0.14
-0.35
0.59
-0.20
-1.97
0.94
4.50
0.47
-0.47
-0.54
1.04
1.82
22.15

13.79
30.14
0.60
1.75
10.52
9.26
14.42
0.72
0.74
4.87
4.32
56.63
337.64

0.02
0.12
0.35
0.04
3.89
0.89
20.26
0.22
0.22
0.29
1.08
3.33
191.39

-0.54
-1.93
-0.46
-0.27
6.40
2.87
17.09
0.40
-0.41
-1.20
2.16
13.73
66.96

10
8
6
4
2

NIKKEI
Column1

0
-2
-4
-6

FIGURE 6.10 : Determination of Nikkei percentage change & Nifty percentage

change.

INTERPRETATION :66

X = % Return on Nikkei closing price

Y = % return on Sensex closing price

r=

51(66.96) (25.88) (22.15)

51(337.64) (25.88)2

51(191.39) (22.15)2

2841.72
12386.42

0.23

INTERPRETION :It is interpreted from the above calculation, that X i.e. percentage change in Nikkei
and Y i.e. percentage change in sensex is positive co-related to each other. The
correlation between these two variable is 0.23 in 2008. This means that when X
increased by 1 % , Y increase by 0.23 % .
1. It is found form the study that the correlation between x & y. i.e. a) Nikkei &
Sensex & b) Nikkei and Nifty are negative correlated.
2. It indicates that if Japanese stock market is increased it will have negative
impact on Indian stock market.
3. Finding the correlation between Nikkei and Sensex for 2009 to 2013 are as
below.
Table 7.1 : co-relation of 2008 to 2009 for Nikkei & sensex
YEAR

CORRELATION

2009

- 0.020

2010

- 0.15

2011

- 0.14

2012

0.24

2013

0.33

67

4. Finding the correlation between Nikkei and Nifty for 2008 to 2012 are as
below.
Table 7.2 : co-relation of 2008 to 2009 for Nikkei & nifty.
YEAR

CORRELATION

2009

-0.038

2010

-0.15

2011

- 0.13

2012

- 0.23

2013

0.23

This study focused on relationship between Nikkei and Sensex & Nikkei and Nifty
by using two statistical tools i.e. average and correlation.
It is concluded form this study that there is negative relationship between i.e.
1. Nikkei and Sensex &
2. Nikkei and Nifty
During this research it is found that there is a negative relation between Nikkei and
Sensex & Nikkei and Nifty. So, Any change in Nikkei stock market its negative
affect to Indian stock market.

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1. When Japanese stock market is decrease then it is recommended that the more
investment in Indian stock market.
2. When Japanese stock market is increase then it is recommended that the less
investment in Indian stock market.
3. Stock market is volatile market so always book partial profit whenever you get
the chance.

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1) REFERANCE BOOKS
Beri. G.C. (2006), Marketing

Research, 4th edition, New Delhi, Tata

McGraw Hill Education Pvt. Ltd., Page No. 4, 5, 61, 87.

Mayur M. Patel (MBA), Statistics Management, 10th edition, B. S. Shah
Prakashan, Page no. 234, 235, 236.

2)WEB SIDE :

http://en.wikipedia.org/wiki/Securities_and_Exchange_Board_of_India
http://en.wikipedia.org/wiki/National_Stock_Exchange_of_India
http://en.wikipedia.org/wiki/Bombay_Stock_Exchange
http://sgssl.co.in/

http://en.wikipedia.org/wiki/Nikkei_225
http://indexes.nikkei.co.jp/nkave/archives/news/20110530E_3.pdf
http://www.bseindia.com
http://en.wikipedia.org/wiki/BSE_SENSEX
http://xa.yimg.com/kq/groups/20688877/1280018539/name/SENSE
X.pdf
http://www.bseindia.com
http://www.nseindia.com/content/indices/nifty_freefloat_method_n
ew.pdf
http://in.finance.yahoo.com/q/hp?s=
%5EN225&a=00&b=1&c=2008&d=11&e=31&f=2008&g=w
http://in.finance.yahoo.com/q/hp?s=
%5EN225&a=00&b=1&c=2009&d=11&e=31&f=2009&g=w
http://in.finance.yahoo.com/q/hp?s=
%5EN225&a=00&b=1&c=2010&d=11&e=31&f=2010&g=w
http://in.finance.yahoo.com/q/hp?s=
%5EN225&a=00&b=1&c=2011&d=11&e=31&f=2011&g=w
http://in.finance.yahoo.com/q/hp?s=
%5EN225&a=00&b=1&c=2012&d=11&e=31&f=2012&g=w
http://in.finance.yahoo.com/q/hp?s=
%5ENSEI&a=00&b=1&c=2008&d=11&e=31&f=2008&g=w
http://in.finance.yahoo.com/q/hp?s=
%5ENSEI&a=00&b=1&c=2009&d=11&e=31&f=2009&g=w
http://in.finance.yahoo.com/q/hp?s=
%5ENSEI&a=00&b=1&c=2010&d=11&e=31&f=2010&g=w
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 http://in.finance.yahoo.com/q/hp?s=
%5ENSEI&a=00&b=1&c=2011&d=11&e=31&f=2011&g=w
http://in.finance.yahoo.com/q/hp?s=
%5ENSEI&a=00&b=1&c=2012&d=11&e=31&f=2012&g=w
http://in.finance.yahoo.com/q/hp?s=
%5EBSESN&a=00&b=1&c=2008&d=11&e=31&f=2008&g=w
http://in.finance.yahoo.com/q/hp?s=
%5EBSESN&a=00&b=1&c=2009&d=11&e=31&f=2009&g=w
http://in.finance.yahoo.com/q/hp?s=
%5EBSESN&a=00&b=1&c=2010&d=11&e=31&f=2010&g=w
http://in.finance.yahoo.com/q/hp?s=
%5EBSESN&a=00&b=1&c=2011&d=11&e=31&f=2011&g=w
http://in.finance.yahoo.com/q/hp?s=
%5EBSESN&a=00&b=1&c=2012&d=11&e=31&f=2011&g=w

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