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Hierarchy of Sectors in BSE SENSEX for Optimal Equity Investments Using Fuzzy AHP

  • Kocherlakota Satya Pritam
  • Trilok MathurEmail author
  • Shivi Agarwal
Conference paper
Part of the Advances in Intelligent Systems and Computing book series (AISC, volume 989)

Abstract

The stock market is considered as one of the most vital components of a free-market economy. The investments of the stock market are associated with a greater amount of risk. Due to the uncertainty associated with stocks, there is a great need to understand the trend in rising and fall of stocks corresponding to a particular sector or an industry to invest profitably. In view of this, authors have taken up a study to identify the best sector in BSE SENSEX for investments. Fuzzy Analytical Hierarchy Process is used to evaluate and study the dominance of various sectors including Automobile, Finance, Information technology, Oil, Pharmaceuticals, and Power. Four crucial derivatives criteria’s Return on equity, Book value per share, Price-earnings ratio, Price to book ratio are considered to study the dominance of each sector. The results of this study help in prioritizing the sectors for future investments.

Keywords

Fuzzy analytical hierarchy process Sectors Satty scale Performance index of sectors BSE SENSEX 

Notes

Acknowledgements

P. Satya would like to thank DST-FIST vide SR/FST/MSI-090/2013(C) for providing infrastructure support and UGC for providing financial support as JRF (Ref. No: 22/12/2013(ii)EU-V with Sr. No. 2121341012).

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Copyright information

© Springer Nature Singapore Pte Ltd. 2020

Authors and Affiliations

  • Kocherlakota Satya Pritam
    • 1
  • Trilok Mathur
    • 1
    Email author
  • Shivi Agarwal
    • 1
  1. 1.Department of MathematicsBITS PilaniPilaniIndia

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