For studying the security market, we have analyzed the CNX 500 index, which is taken to be a proxy for security market. The CNX 500 Index is a capitalization weighted index of 500 companies that represent about 90% of the total market capitalization of India and about 98% of the total turnover (Source: Bloomberg). The index was developed with a base value of 1,000 as of 1994. For studying the currency market, we have analyzed the movement in INR/USD as US Dollar is considered to be the reserve currency of the world.

KEYWORDS: security market, CNX 500 Index, Capitalization, Reserve Currency, Total Turnover.