Saturday, March 17, 2007

Investing in BSE SENSEX

I have been reading a lot about investing in index funds. I posted an article from Fund Advice detailing the benefits of investing in an index. However, the studies done were targeted towards US markets.

I wanted to do something similar for BSE Sensex. I downloaded data from Yahoo Finance. The data was only up to 1 July 1997. I then started looking around and found data from BSE site going all the way back to 1991.

I will be explaining the methodology in later posts. Here, are some quick stats:
Average 1 year returns since 1991 = 19.99%
Average 3 year returns since 1991 = 11.74%
Average 5 year returns since 1991 = 7.65%
Average 7 year returns since 1991 = 6.67%
Average 9 year returns since 1991 = 6.72%
Average 11 year returns since 1991 = 7.20%
Average 13 year returns since 1991 = 10.14%
Average 15 year returns since 1991 = 14.36%


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    As we all know major stock market exchanges in India are

    and NSE. Full form of BSE is Bombay stock exchange covering SENSEX
    where as

    NSE is
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    Now a days USA is facing recession which is affecting world market and
    recently we have witnessed major fall in Nifty and Sensex.

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    Right now Nifty is direction less

    Major suport-4660 below it next will be 4400.If breached then 4000.

    On upper side Res- 5025 closed above can take Nifty to 5150-5200 . 2-3
    closings above 5200 means 5400.

    We suggest strictly follow these level and enter in market as per these
    levels as these are very crucial levels technically.

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    Have a Nice trading days ahead.




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