BSE 10 Market Capitalization folows Sentiment of Investors or Technical Methods- An analytical study

The first and largest securites market in India, the Bombay Stock Exchange (BSE) was established in 1875 as the Native Share and Stock Brokers' Asociation.1 BSE-10 was launched in January 03, 1989 and was previously known as the BSE National Index .The base year for this index is 1983-84 with base index value fixed at 10 points. BSE-10 was launched on ful market capitalization method and shifted to Fre-Float methodology efective from April 5, 204. The Index has 10 companies with varying weightages. BSE calculates a dolar-linked value of SENSEX caled Dolex series of BSE indices. 2BSE 10 is a broad based Index. It is wel used for a lot of constructive work for Analysts as wel as Researchers. This study is to find, whether BSE 10 moves in line with technical methods (valuation or market levels) or not. Here the researcher has taken two independent variables such as adjusted close & P/E against Market Capitalization. The principal aim is to find out relation among these variables and derive a clear way out from this long awaited solution. Multiple Factor Analysis is used to study the movements & posible corelations.