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International Journal of Research & Development in
Technology and Management Science –Kailash

Volume - 22| Issue 6 | 2016 | ISBN - 1-63102-468-X
European Article Number [EAN] - 978-1-63-102468-9
editor.ijrdtm@rtmonline.in | http://journal.rtmonline.in
Paper Id: IJRDTM –0530153

A STUDY ON MARKET RETURN FOR AN INVESTOR: COMPARATIVE
ANALYSIS OF BSE AND SSE
by
Girish Chandra | Student | girishchandra.verma5@gmail.com | GGSIP University
Anjani Kumar Verma | Assistant Professor | anjaniverma29@gmail.com | University of Delhi
ABSTRACT
In this paper, the study of the trend of Bombay Stock Exchange (BSE) & Shanghai Stock
Exchange Composite (SSEC) Market return. To study the Investor Decision making for
investment in of Bombay Stock Exchange (BSE) & Shanghai Stock Exchange Composite
(SSEC) and the relationship between of Bombay Stock Exchange (BSE) & Shanghai Stock
Exchange Composite (SSEC) market return. Finally, a comparative analysis has been
presented; there are positive & direct correlations between the BSE & SSEC. At the time of
2012-2014 the market shows bearish behavior, But BSE return still indicating positive result.
In the 2015 the Chinese index SSEC reach at the boom level and showing bull market or
maximum return. This phase is also known as a bubble in Chinese market or SSEC index. The
Economy of Chinese and Indian are too much different but there indices are correlated and
behave approximately in same direction.
KEYWORDS: BSE, SSEC, Chinese Index, BSE Index, STDEV
INTRODUCTION
A stock exchange or bourse is an exchange where stock brokers and traders can buy and/or sell
stocks (also called shares), bonds and other securities stock exchanges may also provide
facilities for issue and redemption of securities and other financial instruments, and capital
events including the payment of income and dividends Securities traded on a stock exchange
include stock issued by listed companies, unit trusts, derivatives, pooled investment products
and bonds Stock exchanges often function as "continuous auction" markets, with buyers and
sellers consummating transactions at a central location, such as the floor of the exchange.
To be able to trade a security on a certain stock exchange, it must be listed there. Usually, there
is a central location at least for record keeping, but trade is increasingly less linked to such a
physical place, as modern markets use electronic networks, which gives those advantages of
increased speed and reduced cost of transactions. Trade on an exchange is restricted to brokers
who are members of the exchange. In recent years, various other trading venues, such as
electronic communication networks, alternative trading system and “dark pools” have taken
much of the trading activity away from traditional stock exchanges. The initial public offering
of stocks and bonds to investors is by definition done in the primary market and subsequent
trading is done in the secondary market. A stock exchange is often the most important
component of a stock market. Supply and demand in stock markets are driven by various
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factors that, as in all free markets, affect the price of stocks. There is usually no obligation for
stock to be issued via the stock exchange itself, nor must stock be subsequently traded on the
exchange. Such trading may be off exchange or over the-counter. This is the usual way that
derivatives bonds are traded. Increasingly, stock exchanges are part of a global securities
market.
Section 2 briefly issues the past history. In section 3 we mainly introduce the methodology we
have taken here to study the fact. Section 4 gives some related experimental result and
discussions. And finally the conclusion is introduced in section 5.
HISTORY
A. BOMBAY STOCK EXCHANGE LTD (BSE)
BSE Ltd, the first ever stock exchange in Asia established in 1875 and the first in the country
to be granted permanent recognition under the Securities Contract Regulation Act, 1956, has
had an interesting rise to prominence over the past 140 years. While BSE Ltd is now
synonymous with Dalal Street, it was not always so. The first venue of the earliest stock broker
meetings in the 1850s was in rather natural environs - under banyan trees - in front of the Town
Hall, where Horniman Circle is now situated. A decade later, the brokers moved their venue to
another set of foliage, this time under banyan trees at the junction of Meadows Street and what
is now called Mahatma Gandhi Road. As the number of brokers increased, they had to shift
from place to place, but they always overflowed to the streets. At last, in 1874, the brokers
found a permanent place, and one that they could, quite literally, call their own.
The journey of BSE Ltd. is as eventful and interesting as the history of India's securities
market. In fact, as India's biggest bourse in terms of listed companies and market capitalization,
almost every leading corporate in India has sourced BSE Ltd. services in raising capital and is
listed with BSE Ltd. Even in terms of an orderly growth, much before the actual legislations
were enacted, BSE Ltd. had formulated a comprehensive set of Rules and Regulations for the
securities market.
BSE is Asia's first & the Fastest Stock Exchange in world with the speed of 6 micro seconds
and one of India's leading exchange groups. Over the past 140 years, BSE has facilitated the
growth of the Indian corporate sector by providing it an efficient capital-raising platform.
Popularly known as BSE, the bourse was established as "The Native Share & Stock Brokers'
Association" in 1875. BSE is a corporatized and demutualized entity, with a broad shareholder-
base which includes two leading global exchanges, Deutsche Bourse and Singapore Exchange
as strategic partners. BSE provides an efficient and transparent market for trading in equity,
debt instruments, derivatives, mutual funds. It also has a platform for trading in equities of
small-and-medium enterprises (SME). As the first stock exchange in Asia and the pioneer of
securities transaction business, BSE prides itself on being at the forefront of bringing
innovations to the Indian capital markets while creating diverse investment opportunities for
the investor community in India throughout its long history.
SHANGHAI STOCK EXCHANGE COMPOSITE (SSEC)
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The Shanghai Stock Exchange (SSE) was founded on Nov. 26th, 1990 and commenced
operation on Dec.19th of the same year. It is a non-profit organization directly governed by the
China Securities Regulatory Commission (CSRC). SSE bases its development on the principles
of legitimacy, regulation, self-discipline, and compliance in order to create a transparent, open,
reliable and efficient marketplace. SSE endeavors to perform a variety of functions such as
providing marketplace and facilities for the securities trading, formulating business rules,
accepting and arranging listings, organizing and monitoring securities trading, regulating
members and listed companies, and managing and disseminating market information. After a
quarter century of development, SSE has made laudable efforts in pushing forward reforms.
With the introduction of “Shanghai-Hong Kong Stock Connect” and the “Equity Option”, SSE
broke new ground and became into a more open, comprehensive, and modern exchange. Today
SSE has evolved into an exchange with a sound market structure and four major securities
categories: equities, bonds, funds and derivatives. It has put into operation the world’s leading
exchange system and infrastructure communication facilities that can contribute to the efficient
running of the Shanghai securities market. Besides, a self-regulatory framework has been put
into place regulating listed companies, SSE members and the securities market. By the end of
2014, SSE altogether had 995 listed companies with the total market capitalization hitting 24.4
trillion RMB. Its total annual turnover in 2014 stands at 37.56 trillion RMB and the average
daily turnover reached 153.3 billion RMB. The total capital raised in the equities market in
2014 was a staggering 396.259 billion RMB. The bond market consists of 2,603 listed bonds
with the outstanding value totaling 2.29 trillion RMB, the annual turnover standing at 86.68
trillion RMB. 75 funds have been listed in the fund market with a market value reaching 208.4
billion RMB, the annual turnover hitting 3.7478 trillion RMB. The registered account of
investors has reached 123.17 million RMB by the end of 2014.
At present, China has formed the legal system of securities and futures with the “Securities
Law”, the “Company Law”, the “Law on Securities Investment Funds” and other laws as the
core, the administrative regulations of the State Council and the administrative rules of the
regulatory departments as the main parts, and the judicial interpretation of the Supreme Court
and the business rules of the self-regulatory organizations for the securities and futures market
as the complements. The business rules of Shanghai Stock Exchange (SSE) are the collection
of the normative documents with general binding force and continuing effectiveness
formulated and issued by the SSE. At present, the SSE has established the system of business
rules with the Bylaws as the guiding principle, including the basic business rules, the detailed
business rules, the business guides and business notices as well as the business directions,
memorandums and agreements at various levels, and covering all the business processes in the
securities spot market and the stock options market. The SSE will, according to the
requirements for regulation, innovation and development on the market, continue to formulate
and amend the business rules, constantly enhance the system of the business rules and improve
the legal level and the transparency of self-regulation.
The tide of reform and opening up of China's economy since the end of the 1970s, promoted
the emergence of China's capital market. After 20 years of practice, as joint efforts of the
government and the market, China's capital market is making every progress from zero,
expanding the bearing capacity, optimizing the structure and function, and constantly
improving the system construction. With the growth of market participants, China's capital
market has been developing in legal system, trading rules, regulatory systems, which are
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approaching international standards. Today, we have established a stock market with the 3rd
largest market capitalization globally, a bond market with the fifth largest balance globally, and
a futures market with trading volume among the highest in the world. China's capital market
has become an important platform to optimize the allocation of resources, to promote the
development pattern, and to promote the sustainable development of China's economy.
METHODOLOGY
A. EXPLORATORY RESEARCH
The study has been exploratory in nature. Exploratory research is often occurs before we know
enough to make conceptual distinctions of posit an explanatory relationship. It helps in
determine the best research design data collection method and selection of subject. An
exploratory design is conducted about a research problem when there are few or no earlier
studies to refer to or rely upon to predict an outcome. The focus is on gaining insights and
familiarity for later investigation or undertaken when research problems are in a preliminary
stage of investigation. Exploratory designs are often used to establish an understanding of how
best to proceed in studying an issue or what methodology would effectively apply to gathering
information about the issue.
B. DATA COLLECTION METHODS
Secondary method: The data for this study will be collected from various annual reports,
articles, magazines, newspapers and web portals.
DATA ANALYSIS
The objectives of the study will be reached using the methods of statistical analysis, technical
analysis and through investigation of secondary data. For this correlation will be used as the
technique for data analysis. Data has been analyzed and correlation relationship has been
determines based on 5years index data and exchange rates.
TABLE I. BSE & SSEC Five year index data
Index value Exchange rates
Year Adjusted Adjusted Rupee Yuan

close value close value value/$ value/$
BSE SSEC
2011 20561.05078 2808.08 44.67 6.5895
2012 15517.91992 2169.39 53.2975 6.294
2013 19714.24023 2276.99 54.832 6.2301
2014 21140.48047 2109.39 61.9335 6.0504
2015 27887.90039 3350.52 63.3213 6.2046
2016 25,623.35 3,296.26 66.178 6.5052
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C. TREND MOVEMENT OF BSE & SSEC RETURN
Trend analysis is basically the study of past and historical pattern .The movement in trend is
showing the ups and downs in pattern. The study of pattern is help to analyze the behavior of
factor that is, if the pattern showing the ups behavior than it means it is the BULLISH market
period. But if the pattern showing the down behavior than it means it is the BEARISH market
period. In the share market, trend analysis help to measure the pattern movement. In there we
analyze the past 6 year trend movement of Bombay stock exchange (BSE). We have the 6
year’s data of Bombay stock exchange index and calculate the every year return and plot the
line chart of the Bombay stock exchange 6 years return data. The 6 years return data are given
below in the table.
Trend analysis is basically the study of past and historical pattern .The movement in trend is
showing the ups and downs in pattern. The study of pattern is help to analyze the behavior of
factor that is, if the pattern showing the ups behavior than it means it is the BULLISH market
period. But if the pattern showing the down behavior than it means it is the BEARISH market
period. In the share market, trend analysis help to measure the pattern movement. In there we
analyze the past 6 year trend movement of Shanghai stock exchange composite (SSEC). We
have the 6 year’s data of Shanghai stock exchange composite (SSEC) index and we have
calculated the every year return. And plot the line chart of the Shanghai stock exchange
composite (SSEC) 6 years return data. The 6 years return data are given below in the table.
TABLE II. Standard Deviation of BSE & SSEC
Year Adjusted close Return from Adjusted close Return from
value(opening BSE value(opening SSEC
value) value)
2011 20561.05078 2808.08
2012 15517.91992 -24.52759304 2169.39 -22.74472237
2013 19714.24023 27.04177062 2276.99 4.959919609
2014 21140.48047 7.234568633 2109.39 -7.360594469
2015 27887.90039 31.9170604 3350.52 58.83833715
2016 25,623.35 -8.12018961 3,296.26 -1.619450115
STDEV 23.68952143 31.04405071
In the Table II we have given the data of Bombay stock exchange year, index, BSE & SSEC
return and standard deviation of return. Here, the values of standard deviation are
23.68952143% and 31.04405071% is showing that is too much variation in the Bombay stock
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exchange return and Shanghai stock exchange composite (SSEC).. The line chart of return is
given in figure 1.
a) b)
Figure 1: a) Return from BSE; b) Return from SSEC
In the line chart figure 1(a) we can see that at the starting of 2012 is the bearish market period.
And it goes ups or bullish in 2013. But after 2013 due variability it goes again down and
bearish. And it again shows the same behavior in 2014, 2015 and 2016. In the bearish phase the
return from index is getting low and negative and in the bullish it gets high and positive. So the
diagram is showing the pattern, movement of BSE return throw the line chart analysis. And
that is showing the significance changes in BSE market return. Similarly, in line chart figure
1(b) we can see that at the starting of 2012 is the bearish market period. And it goes ups or
bullish in 2013. But after 2013 due variability it goes again down and bearish. And it again
shows the same behavior in 2014, 2015 and 2016. In the bearish phase the return from index is
getting low and negative and in the bullish it gets high and positive. So the diagram is showing
the pattern, movement of SSEC return throw the line chart analysis. And that is showing the
significance changes in SSEC market return.
D. INVESTOR DECISION FOR INVESTMENT
In the Investor decision making for investment. The investor has to make a decision for
investing the fund in the given stock exchanges BSE and SSEC. The investors analyzes the five
year annual return from stock exchange and then check the performance return in each stock
exchange and invests in the optimum performance stock exchange index.
In there we assume that we have an investor Mr. X from USA. He was invested an amount of
$10000 in both stock exchange at the stating of 2011 for the purpose analyzing the
performance of stock exchanges.
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Case 1: the investor invests the whole money in SSEC
In there we have taken the six year data of SSEC index value and calculate annual return on the
basis of it. And we also take the exchange rate data of Yuan (Chinese currency) and Dollar
(USA currency). And the investor invests the $10000 annually into the market for each year.
For the Analysis of SSEC index performance. The following scenario given for the investor
investment process:
Starting process: Investment Process:

TABLE III. SSEC Five year index data TABLE IV. SSEC Expected return data
Year Adjusted Expected Exchange USA Convert Expected Profit and
Close Value Return Rate Of Investor Dollar return he get Loss from
of SSEC From SSEC Yuan
invest in into from market market in
Value/$
china Yuan after one year terms of
2011 2808.08 6.5895
starting of in Yuan Yuan
year(in
2012 2169.39 -22.74472237 6.2940
dollars)
2013 2276.99 4.959919609 6.2301 10000 65895 NA NA
2014 2109.39 -7.360594469 6.0504 10000 62940 50907.36519 -14987.63481
2015 3350.52 58.83833715 6.2046 10000 62301 66061.7734 3121.773402
2016 3,296.26 -1.619450115 6.5052 10000 60504 57715.27604 -4585.72396
10000 62046 96103.54751 35599.54751
61041.19598 -1004.804018
In the table III starting process, we have the given the six year data of SSEC close value. On
the basis of it we calculate the five year expected return value of SSEC. And we have also
market currency exchange rate of Yuan in the context of Dollar for six years. In the table IV we
assume the USA investor invest the amount of $10000 every year for the year. So on the basis
of exchange rate we convert the amount of Dollar (foreign currency) into the Chinese currency
(domestic currency) Yuan for each year. On the basis of calculated each year market return of
the SSEC index, we can calculate the amount of the earnings in end of the every years. And
measure the profit & loss in term of Chinese Yuan.
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After Investment Process:
TABLE V. SSEC Profit/Loss

Convert Yuan Profit and Loss in terms of Dollar
into Dollar at at the end investing in China
the end of year
NA NA
8088.237241 -1911.762759
10603.64575 603.6457524
Figure 2: Profit/Loss on Investment in SSEC

9539.084365 -460.9156354
15489.08028 5489.080281
9383.446471 -616.5535293
In the table V after the getting return in Yuan, We convert the Chinese Yuan into the USA
Dollar and compare with invested amount or the amount invested in starting of the year and
return getting after the every year. After this comparison we analyze and measure the profit and
loss for every year. We have also the line chart diagram of investor investment decision
making in SSEC index at above in figure 2. In the figure 2 we can see that at the end of the
2011 or starting of 2012 the USA investor is suffering or getting loss from investing in SSEC
by $ -1911.7628, but in the end of the 2012 or starting of 2013 it get earn profit of amount of
$603.6457524, In the end of the 2013 or starting of 2014 it again goes down and bear the loss.
But there is significance boom change in the end of 2014 or starting of 2015, the market goes
up and investor enjoys the return of $5489.080281 on investing of amount of $10000. This is
the bubble situation in Chinese economy. And the effect of it’s the Chinese economy get crash
down in the end of 2015 or starting of 2016 by $-616.5535293, and the market return goes into
the negative.
Case 2: the investor invests the whole money in BSE
In there we take the six year data of BSE index value and calculate annual return on the basis
of it. And we have also taken the exchange rate data of Rupee (Indian currency) and Dollar
(USA currency). And the investor invests the $10000 annually into the market for each year.
For the Analysis of BSE index performance. The following scenario has given for the investor
investment process.
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Starting Process:
TABLE VI. BSE Five year index data
Year Adjusted Expected Exchange Investment Process:
close value return from rates of
TABLE VII. BSE return data
USA Investor Convert Expected return Profit and
of BSE BSE rupee
invest in India Dollar he get from Loss from
value/$
starting of into Market after market in
2011 20561.05078 44.67 year(in rupee one year in terms of
dollars) Rupee Rupee

2012 15517.91992 -24.52759304 53.2975
10000 446700
2013 19714.24023 27.04177062 54.832
10000 532975 337135.2419 -109564.7581

2014 21140.48047 7.234568633 61.9335
10000 548320 677100.877 144125.877

2015 27887.90039 31.9170604 63.3213
10000 619335 587988.5867 39668.58673

2016 25,623.35 -8.12018961 66.178
10000 633213 817008.526 197673.526
581794.9038 -51418.09624
In the table VII we assume the USA investor invest the amount of $10000 every year for the
year. So on the basis of exchange rate we convert the amount of Dollar (Foreign currency) into
the Indian currency (domestic currency) Rupee for each year. On the basis of calculated each
year market return of the BSE index, we can calculate the amount of the earnings in end of the
every years. And measure the profit & loss in term of Indian Rupee.
After Investment Process:

TABLE VIII. BSE Profit/Loss
Convert into Profit and Loss in terms of Dollar
Dollar end of at the end investing in India
year
6325.535755 -3674.464245
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12348.64453 2348.644532
9493.869824 -506.1301762
12902.58611 2902.586113
8791.364256 -1208.635744
Figure 3: Profit/Loss on Investment in BSE
In the table VIII after the getting return in Rupee, we convert the Indian Rupee into the USA
Dollar. And compare with invested amount or the amount invested in starting of the year and
return getting after the every year. After this comparison we analyze and measure the profit and
loss for every year. We have also the line chart diagram of investor investment decision
making in BSE index at figure above. In the figure 3 we can see that at the end of the 2011 or
starting of 2012 the USA investor is suffering or getting loss from investing in BSE by $ -
3674.46424, but in the end of the 2012 or starting of 2013 it get earn profit of amount of
$2348.644532, In the end of the 2013 or starting of 2014 it again goes down and bear the loss.
But there is significance boom change in the end of 2014 or starting of 2015, the market goes
up and investor enjoys the return of $2902.586113 on investing of amount of $10000. This is
the effect of Chinese market bubble in Indian economy. And the effect of it’s the Chinese
economy get crash down in the end of 2015 or starting of 2016 by $-1208.635744, and the
market return goes into the negative.
IV. RESULTS & DISCUSSIONS
Correlation between BSE and SSEC Market Return

A correlation coefficient is a coefficient that illustrates a quantitative measure of some type of
correlation and dependence, meaning statistical relationships between two or more random
variables or observed data values. Basically it’s a statistical technique that can show whether
and how strongly pairs of variables are related. The correlation between BSE and SSEC is
showing the how strongly they both are related to each other. The correlation is given in table
X below.
TABLE IX. Correlations between BSE & SSEC return data
Return from BSE Return from SSEC
Return from BSE 1
Return from SSEC 0.786850934 1
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Here the correlation between the SSEC and BSE is 0.786850934 that means there is positive
correlation between the SSEC and BSE. If there the SSEC market changes by 100% than most
probably BSE market by the 78.68% in same direction. So there is direct correlation between
SSEC and BSE market return. We can show the relationship between SSEC and BSE by line
chart analysis as in figure 4 below.
Figure 4: Relationship market return of SSEC and BSE
In the figure 4, there is showing the relationship market return of SSEC and BSE. We can see
in the figure that at the 2012 the market return of SSEC and BSE index is approximately same
or there is less difference between them. But at stage or period of 2013 the return from BSE
index is high as compare to SSEC index. But in the 2014 the return is getting decline and
SSEC index return gets negative at this stage of time but BSE index return is also get decline
but remains positive. That shows the return from Indian market is good as compare Chinese
market at this stage. But at the 2015 there is bubble create in Chinese market and the Chinese
economy depreciate the value of their currency, so it is rapidly increase the SSEC index value
and return. And effect of its Indian market is also increasing but not that much as compare to
Chinese market. So the effect of bubble the Chinese market crash in 2016 and index goes too
much down and the market return get negative. But Indian market more affected by it and goes
down and provides negative return to investors. So the outcome relationship among SSEC and
BSE index is positive and at the same direction. But Indian market is more stable during this
six year as compare to Chinese market, but return from the Chinese market is high during the
2014-2015. We have found the following results from the analysis which is listed below:
 There are positive & direct correlations between the BSE & SSEC.
 At the time of 2012-2014 the market shows bearish behavior, But BSE return still
indicating positive result.
 In the 2015 the Chinese index SSEC reach at the boom level and showing bull market
or maximum return. This phase is also known as a bubble in Chinese market or SSEC
index. Because after this year and phase Chinese market collapse and provide negative
return.
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The Economy of Chinese and Indian are too much different but there indices are correlated and
behave approximately in same direction.
CONCLUSION
In this research the conclusion is, “The Indian stock exchange BSE is performing well as
compare to Chinese stock exchange SSEC”. But due to high variation in the exchange rates of
Indian rupee, the return & earnings of foreign investor (assumed USA investor) is getting low
or negative, But in the Chinese stock market the return of SSEC is not too much well as
compare to BSE index but their fixed exchange rates helps to foreign investor (assumed USA
investor) to earn profit or positive return by the currency conversion.
REFERENCES
[1]. STOCK EXCHANGE: en.wikipedia.org (accessed in January 2016)

[2]. BSE: bseindia.com (accessed in January 2016)
[3]. SSEC: english.sse.com.cn (accessed in January 2016)
[4]. CORRELATION: en.wikipedia.org (accessed in February 2016)
[5]. CORRELATION: Surveysystem.com (accessed in February 2016)
[6]. INDEX DATA: BSE & SSEC: in.finance.yahoo.com (accessed in January 2016)
[7]. CURRENCY DATA: INDIA: rbi.org.in (accessed in January 2016)
[8]. CURRENCY DATA: CHINA: xe.com (accessed in January 2016)
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International Journal of Research & Development in

Technology and Management Science –Kailash

Paper Id: IJRDTM –0530153

Girish Chandra | Student | girishchandra.verma5@gmail.com | GGSIP University

Anjani Kumar Verma | Assistant Professor | anjaniverma29@gmail.com | University of Delhi

KEYWORDS: BSE, SSEC, Chinese Index, BSE Index, STDEV

Paper Id: IJRDTM –0530153

A. BOMBAY STOCK EXCHANGE LTD (BSE)

Paper Id: IJRDTM –0530153

Paper Id: IJRDTM –0530153

B. DATA COLLECTION METHODS

Year Adjusted Adjusted Rupee Yuan

2011 20561.05078 2808.08 44.67 6.5895

2012 15517.91992 2169.39 53.2975 6.294

2013 19714.24023 2276.99 54.832 6.2301

2014 21140.48047 2109.39 61.9335 6.0504

2015 27887.90039 3350.52 63.3213 6.2046

2016 25,623.35 3,296.26 66.178 6.5052

Paper Id: IJRDTM –0530153

C. TREND MOVEMENT OF BSE & SSEC RETURN

2011 20561.05078 2808.08

2012 15517.91992 -24.52759304 2169.39 -22.74472237

2013 19714.24023 27.04177062 2276.99 4.959919609

2014 21140.48047 7.234568633 2109.39 -7.360594469

2015 27887.90039 31.9170604 3350.52 58.83833715

2016 25,623.35 -8.12018961 3,296.26 -1.619450115

STDEV 23.68952143 31.04405071

Paper Id: IJRDTM –0530153

Figure 1: a) Return from BSE; b) Return from SSEC

D. INVESTOR DECISION FOR INVESTMENT

Paper Id: IJRDTM –0530153

Starting process: Investment Process:

2013 2276.99 4.959919609 6.2301 10000 65895 NA NA

2014 2109.39 -7.360594469 6.0504 10000 62940 50907.36519 -14987.63481

2015 3350.52 58.83833715 6.2046 10000 62301 66061.7734 3121.773402

2016 3,296.26 -1.619450115 6.5052 10000 60504 57715.27604 -4585.72396

10000 62046 96103.54751 35599.54751

Paper Id: IJRDTM –0530153

TABLE V. SSEC Profit/Loss

into Dollar at at the end investing in China

the end of year

Figure 2: Profit/Loss on Investment in SSEC

Case 2: the investor invests the whole money in BSE

Paper Id: IJRDTM –0530153

2011 20561.05078 44.67 year(in rupee one year in terms of

dollars) Rupee Rupee

10000 532975 337135.2419 -109564.7581

10000 548320 677100.877 144125.877

10000 619335 587988.5867 39668.58673

10000 633213 817008.526 197673.526

After Investment Process:

Dollar end of at the end investing in India

Paper Id: IJRDTM –0530153

Figure 3: Profit/Loss on Investment in BSE

IV. RESULTS & DISCUSSIONS

Correlation between BSE and SSEC Market Return

Return from BSE 1

Return from SSEC 0.786850934 1

Paper Id: IJRDTM –0530153

Figure 4: Relationship market return of SSEC and BSE

Paper Id: IJRDTM –0530153

[1]. STOCK EXCHANGE: en.wikipedia.org (accessed in January 2016)

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