Comparative Analysis of S&P SENSEX V/S NIKKEI 225

Stock market is of the most important indicator of the nation’s growth and development. It would always difficult to predict and measure the movement of all the stocks at a time. That is why index is used to show the exact picture of the growth story. Index includes stocks of the major player of the different industries, private as well as the public sector. The Stock index is a barometer of nation’s economic health as market prices reflect expectation about the economy’s performance. However, it measures overall market sentiment through a set of stocks that are representative of the market and provides investors information regarding the average share price in the market. The market index reflects expectations about the behavior of economy as a whole. It is a pioneer of economic cycles. A well constructed index shows the behavior of the market and it also represents the return obtained by a typical portfolio investing in the market. Index indicates the direction towards which
economy of the nation is moving. Here in this paper comparative analysis is made of the two countries sock index. Out of which one is Japan one of the developed country having the capitalist economy and on the contrary India which is one of the fastest moving economy of the world having mixed economic system. Here NIKKEI 225 is taken as a representative of the Tokyo Stock Exchange and S&P SENSEX represents the Bombay Stock Exchange. This paper consists the historical development of both the stock exchanges and indices along with the present scenario of the stock market.