The Bombay stock exchange(BSE) sensex/index is given by S = log x and NSE index by N=(logx)2 where x > 1. Find the number of times the two indices cross each other.
Cannot be determined
In simple words, we have to find the values for which N = S
Since log x≠0 as x > 1
Therefore, log x=1⇒x=10
Hence there is only one time when the two indices cross each other.
Consider the following statements:
Which of the statements given above is/are correct?
1 and 3
2 and 3
None of these
IndexCurrentPrevious% ChangeS & P CNX Nifty3641.13770.55−3.43%CNX Nifty Junior6458.556634.85−2.66%CNX IT5100.55314.05−4.02%Bank Nifty5039.055251.55−4.05%CNX 1003519.353640.35−3.32%
IndexCurrentPrevious% ChangeNYSE Cornposite8926.889120.93−2.13%NASDAQ Composite2350.572402.29−2.15%DOW Jones IA1207612318.6−1.97%S & P 5001377.951406.6−2.04%Nikkei 22516676.917178.8−2.92%
The above figures are taken from the website of National Stock Exchange of India. They illustrate the movement of NSE stock indices as well as world stock indices on the date indicated.
What do you mean by a stock index? How is it calculated?
|NSE Indices||Word Markets|
|Index||Current||Prev.||% CHG||Index||Current||Prev.||% Change|
|S&P CNX Nifty||3641.1||3770.55||-3.43%||NYSE Composite||8926.88||9120.93||-2.13%|
|CNX Nifty Junior||6458.55||6634.85||-2.66%||NASDAQ Composite||2350.57||2402.29||-2.15%|
|CNX IT||5100.5||5314.05||-4.02%||DOW Jones I. A.||12076||12318.6||-1.97%|
|Bank Nifty||5039.05||5251.55||-4.05%||S & P 500||1377.95||1406.6||-2.04%|
|CNX 100||3519.35||3540.35||-3.32%||Nikkei 225||16676.9||17178.8||-2.92%|
The above figures are taken from the website of national stock exchange of India. They illustrate the movement of NSE stock indices as well as world stock indices on the date indicated.
1. What do you mean by a stock index? How is it calculated?
2. What conclusions can you draw from the various movements of NSE stock indices?
3. What factors affect the movement of stock indices? Elaborate on the nature of these factors.
4. What relationship do you see between the movement of indices in world markets and NSE indices?
5. Give details of all the indices mentioned above. You can find information on the web or business magazines.