Hi Sandeep, I guess you already have the list of sectors & their components stocks ready. Let me mention something to assure we are on the same page before going further.
The advantages of constructing one's own index, versus using those from NSE/BSE are:
- nse does not has index for all sectors- utilities, tansportation, basic industry, sugar, FMCG...
- For studying seasonality you will need to look at long term chart... they will not give you data as much as 10 years back
- For relative strength ranking of particular stock it will be easier to have you own sector index
Seasonality helps you to understand at what time in a year and at what phase in a business cycle a particular sector will underperform or outperform.
With
Relative Strength ranking you can pick the best stocks in the best sector.
So if you aleardy have you stock in your database arranged... we can go ahead constucting own sector index. The method is very simple, you just need a proper afl. There are many afl gurus or I can also help in that.