An analytical study of sectoral indices with reference to NSE

Every now and then we heard about how good or bad a sector performing, which creates problem in obverse of investor in which sector he should invest. One point should be kept in mind before investing in any sector is its own sectoral return vis-à-vis market return. Every investment has inherent risk; risk is basically the uncertainty in the changes in the price of an asset. Before investing in any sector an investor should identify the risk to which he is exposed, and initiate measures to manage the risk to ensure reasonable and steady earnings. Exposure is the sensitivity to changes in the prices. Individual sector risk can be diluted by diversification, i.e. investing in diverse sectors having different level of risk. In other words, fund available need to allocate among various sectors, considering their performance with that of market. Present paper tried to analyze the different sectors performances with the help of MS Excel 2013 by using Y-o-Y growth, CAGR and the correlation between them, with NIFTY 50 as benchmark. Investors can be benefited by going through this paper and can make rational investment decisions.