A Study of S&P CNX Nifty Fifty and Its Performance Comparison with Selected NSE Sectoral Indices

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Abstract

The benchmark index of national stock exchange SP CNX NIFTY Fifty Index is an indicator to track the stock movement of the NSE. The study put forth is an attempt to describe the correlation of returns of NIFTY with the 9 selected sectorial indices. To analyze the correlation, returns (daily) of the various indices were calculated from 0101201 to 31122018. The results have shown that in a given year IT index have outperformed the considered benchmark index NIFTY. Financial services index has highest correlation with NSE Nifty at 0.887 fallows by Bank Index correlation with nifty is 0.869 and IT has least correlation with NSE Nifty index at 0.359.