Major World Indices Comparison

Major World Indices Comparison Objective The study was undertaken with a view to compare the returns over a period of time starting from 15th February 2007 to 28th March 2008. It is also an aim to establish any contrasting comparison thereon. Procedure Comparison of Nikkei, Dow Jones, Hang Seng, Sensex Graphical comparison derived from daily closing figures Findings Till 28th March 2008, Indian Sensex has yielded much more return that other index in comparison. In absolute terms the returns stand as Sensex Hang Seng Nikkei 114.04 113.37 71.63

Dow Jones 95.70

Base scale on 15th February 2007 was considered as 100. The maximum returns are as (in absolute terms) Sensex Hang Seng Nikkei 145.40(1/8/2008) 154.08(30/10/07) 102.03(7/9/07)

Dow Jones 110.96(10/9/07)

The minimum returns are as (in absolute terms) Sensex Hang Seng Nikkei 86.48(3/6/2007) 90.87(3/5/2007) 65.86(3/17/2008)

Dow Jones 91.97(3/10/2008)

1. Volatility comparison (Absolute terms) Sensex Hang Seng Nikkei 58.92 63.21 36.35

Dow Jones 18.99

While Sensex and Hang Seng are highly volatile, Nikkei has shown downwards volatility to a major extent. Dow Jones being moderately or less volatile compared to these indexes.

Are the FII traitors? (The discussion continues below the chart) Index Comparison 150

110

90

70

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15 /2 3/ 007 1/ 3/ 200 15 7 3 / /2 0 0 29 7 4 / /2 0 0 12 7 4 / /2 0 0 26 7 5 / /2 0 0 10 7 5 / /2 0 0 24 7 /2 6/ 007 7/ 6/ 200 21 7 /2 7/ 007 5/ 7/ 200 19 7 /2 8/ 007 2/ 8/ 200 16 7 8 / /2 0 0 30 7 9 / /2 0 0 13 7 9 / /2 0 0 27 7 1 0 /2 0 /1 0 7 1 0 1 /2 0 /2 0 7 5 1 1 /2 0 0 /8 7 1 1 /2 0 /2 0 7 2 1 2 /2 0 0 /6 7 1 2 /2 0 /2 0 7 0/ 2 1/ 007 3/ 1/ 200 17 8 1 / /2 0 0 31 8 2 / /2 0 0 14 8 2 / /2 0 0 28 8 3 / /2 0 0 13 8 3 / /2 0 0 27 8 /2 00 8

50

Time Frame Nikkei

Hang Seng

Dow Jones

Sensex

It is well known that Sub Prime concern was a previously known fact in the US (more than 3 years) From the graph it is amply clear that as the returns of Dow Jones and Nikkei dwindled, there is significant contrasting upside movement in Sensex and Hang Seng. For the aforesaid period a significant positive correlation is established between Hang Seng and Sensex. A type of distrusting positive correlation exists between Nikkei and Dow Jones. Copyright @ Anubrata Mullick Contact [email protected] Phone: 91-9433928220

Index Value

130