An Econometric Assessment of Performance of Indian Capital Market

Authors

  • Leonard T Das Eritrea Institute of Technology, Abardae, Eritrea Author

Keywords:

capital marke, market size,, , market liquidity, market volatility,, market efficiency

Abstract

During last two and half decades there has been a paradigm shift in Indian capital market. The applications of

 

technology in the payment and settlement systems have made the Indian capital market comparable with the

 

international capital markets. Now, the market features a developed regulatory mechanism and a modern market

 

infrastructure with growing market capitalization, market liquidity, and mobilisation of resources. However, the

 

market has witnessed its worst time with the recent global financial crisis that originated from the US sub-prime

 

mortgage market and spread over to the entire world as a contagion. The capital market of India registered a

 

sluggish performance. In this context, it is imperative to conduct empirical analysis to study the performance of

 

Indian capital market. It is with this backdrop, this paper attempts to analyse the key market parameters such as

 

market size, market liquidity, market turnover ratio, market volatility, and market efficiency of Indian capital

 

market over a period from 2002 to 2009 so as to assess its performance. The application of time series

 

econometric model provides the evidence of greater volatility and weak form inefficiency of the market.

 

However, the market shows strong potential for greater market size, more liquidity and reasonable market

 

turnover ratio.

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Published

2017-09-30

Issue

Section

Articles

How to Cite

Das, L. T. . (2017). An Econometric Assessment of Performance of Indian Capital Market. Bulletin of Business and Economics (BBE), 6(3), 103-110. https://bbejournal.com/BBE/article/view/188

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