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The Impact of Population Growth on Sensex and Nifty Values in India

Lehya Joseph*

Department of Statistics, Amrita Vishwa Vidyapeetham, Coimbatore, Tamil Nadu, India

*Corresponding Author:
Lehya Joseph
Department of Statistics, Amrita Vishwa Vidyapeetham, Coimbatore, Tamil Nadu, India
E-mail:
joseph.lehya@yahoo.com

Received: 27-May-2023, Manuscript No. JSMS-23-100278; Editor assigned: 29-May-2023, Pre QC No. JSMS-23-100278 (PQ); Reviewed: 13-Jun-2023, QC No. JSMS-23-100278; Revised: 20-Jun-2023, Manuscript No. JSMS-23-100278 (A); Published: 27-Jun-2023, DOI: 10.4172/J Stats Math Sci.9.2.005

Citation: Joseph L. The Impact of Population Growth on Sensex and Nifty Values in India. J Stats Math Sci. 2023;9:005.

Copyright: © 2023 Joseph L. This is an open-access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.

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Abstract

Description

Population research has become increasingly significant as the world's population continues to grow at an unprecedented rate. As the population increases, so do several economic indicators, including the Sensex and Nifty indexes in India. Understanding the relationship between population research and the stock market is critical for investors and policymakers. Population research involves the study of demographic trends such as fertility rates, mortality rates, migration patterns, and aging populations. The demographic data obtained from this research imparts vital insights into economic and social development trends. It is essential in understanding the current and future population growth of a particular country or region. The data obtained from population research also helps governments and non-governmental organizations in generating policies that cater to the evolving needs of the country's population [1]. Sensex and Nifty are the two primary stock market indexes that reflect the investment performance of the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) of India, respectively. These indexes represent the overall direction of the stock market in India and are used as a barometer to measure the country's economic performance. As population research affects demographic trends, it is no surprise that these indexes are also impacted by demographic changes [2]. One significant demographic trend that affects the stock market is the aging population. As the population ages, the demand for specific goods and services increases, while demand for others declines. For instance, healthcare demands tend to increase, while the demand for durable goods like automobiles decreases. Companies that cater to the elderly or healthcare service providers, therefore, experience an increase in demand, which ultimately impacts the stock market positively.

Similarly, an increase or decrease in the youth population can also affect the stock market. The youth are often touted as drivers of the economy due to their high consumption patterns. However, they are also more volatile in their investments as compared to older investors. This sentiment plays a crucial role in stock market performance and changes in the Sensex and Nifty indexes [3]. On the other hand, an aging population may negatively affect the stock market, as older individuals tend to save more and spend less, leading to reduced demand for certain goods and services. However, this trend could also be reversed, with the growing demand for healthcare services, specifically targeted for the elderly population, leading to increased investment in healthcare-related companies and consequently the stock market. Migration patterns also play a crucial role in determining the Sensex and Nifty values, with growth in urban areas leading to increased demand for housing and infrastructure, offering investment opportunities in real estate, and construction industries. Subsequently, the stock market performance is positively impacted.

Population research plays an integral role in shaping how we understand economic trends and development. In turn, economic indicators such as the Sensex and Nifty indexes reflect the impact of demographic trends on the stock market. By understanding how population research and stock market indexes interact, investors and policy-makers can make informed decisions that have a positive impact on the economy [4]. The youth population's contribution to consumption patterns and the demand for specific goods and services can positively impact the stock market, while the aging population's impact can be mixed. Finally, migration patterns could positively impact the stock market as increased urbanization leads to growth in the construction and real estate sectors. Understanding these demographic trends can provide insights and assist investors and policymakers in making informed decisions. The relationship between population research and the stock market can lead to better-informed decisions that contribute to the overall growth and prosperity of the economy.

References