IMPACT OF FOREIGN EXCHANGE RATE ON BSE SENSEX

Abstract

The Bombay Stock Exchange (BSE) is that the first and largest exchange in India and was established in 1875 because the Native Share and Stock Broker's Association. based in Mumbai, India the BSE lists near 6000 companies and is one among the biggest exchanges within the world, together with the New York Stock Exchange (NYSE), (NASDAQ), London securities market group, Japan exchange Group, and Shanghai securities market.Objectives The objectives of the study include: a) To study the relationship between foreign exchange rate and BSE Sensex. b) To study the impact of foreign exchange rate on BSE Sensex.Limitations Secondary data used in this project was not exactly accurate data because of lack of proper sources for collection of data. The error already existing in secondary data can’tbe judged and so those data will reflect wrong result in study. This is one of the major limitations while using secondary data for analysis. These kinds of study must not be done in short span of time, detailed in depth study is not possible so as to reach at any relevant and appropriate result. Lack of expertise of the researcher will lead to wrong interpretation. Only one pair of exchange rate is used.