This Project is done in BgSE Financials Ltd. basically to study & analyze the effect of commodity prices on the movement of stock market index. The aim of the study is to comparing the two variables stock market index and prices of commodities.
Continuous economic liberalization over the years by the government of India has resulted in making India as one of the prime business destination at the same time in India Commodities market is in its early growth
Commodities market in India has witnessed significant jump and which are on a threshold of a take off.
Gold, Crude oil and Steel commodity prices are considered for the analysis part by comparing with the two top performing indices i.e. BSE Sensex and NSE nifty.
Commodity prices are the spot prices in the NCDEX and past two years data is considered for the analysis.
The research is based on the analysis of two variables. This is done by measuring association between variables.
For analyzing the association co-efficient correlation is calculated and its significance is tested through drawing a hypothesis.
Further the Crude oil price is compared with oil & petroleum sector and Steel price with steel sector companies share price. The companies selected in steel sector are Tata steel, Bhushan steel & SAIL. The companies selected in oil & petroleum sector are ONGC, IOC & BPCL.
The analysis aims at finding out relationship between the commodities market and the stock market movements.
BgSE Financials Limited, a company jointly promoted by Bangalore Stock Exchange Limited and its members was incorporated in the year 1999. The tech savy company inherits from its parent, Bangalore Stock Exchange, a strong legacy of nearly four decades of uninterrupted & unmatched expertise and trust with the investing public in the Capital Market.
The Company has a vision of being one of the leading financial super markets in India covering a wide...