Technological relationship between banknifty and other selected sectorial indices of NSE

Abstract

Financial market of a country signifies the monetary strength of its economy. Smart monetary health of a rustic helps in enhancing the money flows and creates capital, that contributes to the event of the country. Post economic process innovate India he monetary market has entered into a replacement phase of worldwide integration and alleviation with variety of recent and innovative monetary instruments. The objective of the is to find the nature and extent of technical relationship between Nifty Bank on other selected sectorial indices of National Stock Exchange and to examine the risk and return factors of the sectorial indices. The major use of stock market indices are as a forecasting tool. Studying the historical performance of the stock market indices, you can forecast trends in the market. All the sectors of NSE are not considered in this study. Only five sectors other than bank nifty are considered. Six different sectors are compared individually with the Nifty Bank by the tools called correlation and Regression. Correlation and regression between the indices has been used to identify the relationship and extent of impact between Nifty Bank and other selected sectorial indices. From the results and findings of this study, one can understand that there is a significant relationship between Bank Nifty and other selected sectors (Energy, FMCG, IT, Media, Pharma) except Infrastructure. It is showing a poor relationship with Bank Nifty.