Sama Circular Model and ARIMA on Forecasting BSE Large-Cap

The Indian stock market has a significant place in the global market. It is known that performances of Indian stock market affect the nearby share markets as well as the far away markets. The Bombay Stock Exchange (BSE) is the first Indian stock market exchange. As such predictions on BSE were immense interest of the investors. BSE uses various stock market indices for measuring performances of the market. Among them, S&P BSE Large-Cap index captures top 70% of companies listed in the exchange. Therefore forecasting S&P BSE Large-Cap is helpful for investors. Literature revealed that the Auto Regressive Integrate moving Average (ARIMA) method was highly successful in share market forecasting, but some studies disagree with them. It was found that the Sama Circular Model (SCM) also successful in share market forecasting and superior to ARIMA in many real life applications. It was intended to test SCM and ARIMA on forecasting S&P BSE Large-Cap. It was concluded that the SCM is highly successful for the purpose and superior to ARIMA in light of that