The popularity of stock exchange is synonymous with the evolution of the companies. They provide a readymade market for the securities provided by the companies. With the evolution of the companies, the stock market has grown considerably in various parts of the world. The stock exchange movements are watched all over the world as they are considered the barometers of industrial performance. It provides a platform to deal in securities where demand & supply factors determine the pricing of the stock. It also helps in spreading the equity cult thus enabling the companies to get the required amount of investment directly from the public. The researcher has attempted to find out the effect of changes in NYSE due to changes in Indian stock market. In this study the researcher has chosen Bombay Stock Exchange(BSE) as its sensex is the oldest as well as being more popular stock exchange in India. The NYSE is the largest stock exchange in the world & its movements affect the world’s economy. This paper deals with the relationship between BSE & NYSE The researcher has tried to find out whether movement in the stocks in BSE has an effect on NYSE & vice versa. It also takes into account the fluctuations in the returns obtained from the stock exchanges. In this paper it has also attempted to show the effect of changes in the returns of the stock exchange over the GDP of the country. The data of 11 years were taken into account for doing the research.
