i would like suggestions of a topic as creation of a stock index just sound abit vague, since it leaves the question then what??????
Most stock indexes are capitalization weighted, which has some strong justification from a financial theory point of view. But lately there has been interest in other schemes, for example weighting by earnings or sales. There have also been arguments that something should be done to make them more representative of the economy as a whole, rather than just the publicly traded bit. You might want to investigate one or several of these alternatives as your topic.