Abstract
The objective of this work is to ascertain sectoral characteristics of stock market indices of India through time series decomposition. It is postulated that different sectors in an economy do not behave uniformly and sectors differ from each other in terms of their trend patterns, their seasonal characteristics and also their randomness. The R programming language is used for decomposing the time series of the sectoral indices as well as indices of stocks. Based on our approach, we also provide a framework of forecasting that can be applied on various sectors of an economy and also on individual stocks in the sectors. Results indicate that the behavioral patterns of stocks largely follow those exhibited by the respective sectors to which they belong. The forecasting methods are found to be robust and accurate in forecasting the pattern of index movements of the sectors and the individual stocks.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: International Journal of Business Forecasting and Marketing Intelligence
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
