The Effect of Granger Causal and Volatility of BSE Sensex and Sectoral Indices with reference to Indian Stock Market

Based on the robustness of securities market, the growth, strength anddevelopment of the market economies and the maturity of the Indianeconomy are decided. In this Stock markets plays a substantial role in thepromotion of an economy. It expedites the mobilization of funds fromvarious investors such as individual investors or small or large scalebusiness or company or firm etc. and navigate these resources intovarious development needs of various sectors of the Indian economy. Asan organised security market, stock exchange provides marketability andvolatility of price continuity of shares and fluctuation among them invarious sectoral indices and it helps in a fair evaluation of securities interms of their intrinsic worth. This paper “The Effect of Granger Causaland Volatility of BSE Sensex and Sectoral Indices with reference to IndianStock Market” is to analyse the data collected from the period of 2010 -2019. Using SPSS software such as Descriptive Statistics and GrangerCausality tests helps to ascertain the causal relationship between the BSESENSEX and other sectoral Indices such as BSE AUTO, BSE BANK, BSECG and BSE FMCG and also explore the effect of volatility of shares andits price movements between BSE SENSEX and other indices with specialreference to Indian Stock market which helps to orderly flow anddistribution of savings and different types of investment by the variousinvestors and also provide information to promote the interest of investorto increase their investment decision without any hesitation