Bombay Stock Exchange Sensitive
Index (BSE SENSEX), one of the most popular index, comprising of the top 30
companies listed on BSE Limited. The SENSEX follows the listing methodology of
free float market capitalization weightage. The composition of SENSEX is reviewed from
time to time in line with the changing capital market conditions. The BSE
selects the company to be listed on SENSEX based on market capitalization of
number of shares available for trading and not on the issued. The SENSEX reflects the companies from various
facets of the industries and it is a true barometer of the Indian Capital
markets.
Although there have been
several factors affecting the currency movement, there has always been a strong
and negative repercussion of any depreciation of Indian Rupee (INR) against
American Dollar (USD).
Source: http://www.bseindia.com/indices/IndexArchiveData.aspx?expandable=1,
http://www.investing.com/currencies/usd-inr-historical-data
Some
of the factors that have been roughly responsible for depreciation of INR against
USD in the past few years are:
- Change in Interest Rates
- Crude Oil and Gold Imports
- Prices of Crude Oil
- Employment Data
- Major Change in US Government Employment Policies
- Political Statements in relation to Foreign Direct Investments(FDI)
Although,
the INR depreciation is beneficiary for export based companies, in the long
run, the operating margins of these companies fail to match the gain in
currency change. SENSEX, being the most tracked index is most sensitive to any
global news affecting the major FII investments in the capital market.
The
detailed review of the monthly market movement for BSE Sensex can be tracked at
http://www.bseindia.com/indices/monthlyReport.aspx?expandable=0
Thanks and Regards
Team
Email: saarthifp@gmail.com
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