Sectoral Contribution to the Sensex - An Analysis

Abstract

India has recorded an average growth rate of 8 per cent over the past four years. This consistency in the growth rate nnay not be possible in the coming year due to the ongoing global recession. International agencies are of the opinion that there is going to be a great dip in the growth rate of India. Yet India think tanks are of the opinion that that the growth rate of the country can still be maintained though a little lower than expected normally because the domestic demand would sustain it. The sensex has been watched with keen interest in this given scenario. If at all India has been affected by the global meltdown, the question is which could be the sectors that have taken a toll, specifically in relation to contributing to the sensex. A new trend of selisting from the stock exchanges is also evident recently in India and this requires serious considerations regarding its implications on the shareholders. This paper has been divided into sections such as the introduction, sectors expecting growth, sectors most affected, sectors affected moderately, sensex and the sectors correlated, the inference and the concluding remarks.