Stock Market Development And Economic Growth

India’s economy is booming! With large decreases in poverty, increases in literacy and GDP, India is continuing to make its way out of the third world and into the first. India is predicted to surpass even China in growth by 2050. A competitive private capital market has instilled Indians with a low cost high quality mentality and has resulted in some of the highest return rates for any country. India has been averaging 6% growth compared to China’s 9.5% with half the investments. India capital efficiency is one of its strongest economic benefits.

of economy. However, the existing literature is silent on the stock price dynamics and agency costs

There is an abundant of literature can be found on the study of causal relationship between the macroeconomic variables and the stock prices with various scope and time period. Also majority of the study results depicted the association between the macro indicators and the stock market movement either in the forward or in the backward or also a bidirectional relationship. Some of the previous research works on this topic have been discussed and it is found that those conclusions supported the present study.

Some studies do examine the portfolio management along with the market volatility, impact however; the scope is often limited to a Bangalore. This study takes a look at the awareness of Mutual fund industries its growth in India. If one considers the transactions by domestic mutual funds (MFs) in the equity market an indicator of domestic investor participation in the stock market, domestic investors have been active participants in recent times. But the common perception that domestic investors lack market-moving influence is not entirely based on fact.

In the Stock Market, More number of efficiency is studied. Weak form efficiency of Indian capital market studies are supported.(Prusty , 2007 ; Mittal and Jain , 2009).Weak form efficiency of Indian capital market do not support by researcher (Pandey , 2003 ; Mishra , 2009). Weak form of efficiency does not rejected. In the Financial System stock market is very important Factor. In stock index future ,there is no significant volatility effect. A volatility index is for very short term volatility.

There is a dispute of seasonal effect (calendar anomaly) exists in financial stock market. This paper analyses the historical information and data to determine the existence of calendar anomaly in India and United State. According to Forbes- 2015, United State holds the first position in World’s Biggest Stock Exchange while India stands at ninth. USA Stock market is the first choice for many leading enterprises of other countries to list upon. In the case of India, its stock market is emerging strongly due to rapid economic growth.

The belief of macroeconomic variables influencing the stock market has been a highly debated discussion for the past decades. There has been no clear conclusion whether or not macroeconomic variables impact the stock market or inversely. The importance of this study have been increasingly critical as not only stock agents find the critical importance but the government to implement macroeconomic policy; the solid finding of this relation will enable policy makers to efficiently and effectively control the economy as well as the capital market. We aim to cover some relationship between macroeconomic indicators, including consumption, interest rate unemployment rate and inflation rate, and with stock price.

Although the long run research and studies conducted by different economists gives a very different picture of the relationship between stock returns and economic growth, but very little empirical evidences to support the view with. Many economists and researchers supported the view that, stock returns and economic growth does not have a positive

This paper will discuss the nature of security market efficiency and then an application of understanding of stock market bubbles to a particular company. It will also develop and demonstrate an understanding of the topic area of capital market efficiency as well as apply theoretical understanding to the analysis of market information in the context of a company listed on the Shanghai Stock Exchange (SSE). It will illustrate the information on distance from the assumption that financial markets perform well and price changes constantly demonstrate real data. Furthermore, this paper will also illustrate what episodes of volatile security price behavior mean for the notion that security markets work efficiently. On the other hand, the main reason of this paper is to prepare a critical literature review of the competing views that stock market bubbles undermine confidence in the Efficient Market Hypothesis. This will investigate the movements of the share price of Shenergy Ltd and of the Shanghai Stock Exchange Composite Index generally in the light of information available to investors. Moreover, it will also define the actions and circumstances which may be related to share price movements and what has influenced share prices on the SSE over this time. This means, this will explain regarding the share price behavior that have been observed and confirms by any of the academic views encountered in literature review.

By analyzed the link between financial asset prices and monetary policy is highly important to achieve a better understanding in the transmission mechanism of monetary policy, as the changes in financial asset prices is a main role in several channels. We contribute empirical confirmation data on the relationship between monetary policy and the financial stock market. In the economy, stock prices are among the most strictly monitored asset prices in the market and stock prices are also frequently seen as being strongly sensitive to economic situation. Bernanke and Kuttner (2005) stated that some researchers view the stock market as a separate source of macroeconomic volatility to which governmental may wish to acknowledge. Stock prices often known as volatility and boom-bust cycles and leading to the interest about preserved deviations from their fundamental values. Hence, the authorize quantitatively the continuation of a stock market respond to the monetary policy changes will not only be significantly related to the study of the stock market purpose but will also assign to a further research and understanding of the element of monetary policy and further discussion of the economic impact on stock market.

Political factors and macroeconomic indicators have earned an ever-increasing academic and public attention in influencing the financial health of a country since last few decades. The stock market performance is not an exception. For instance, two major political events, the ‘9/11 attack on the USA’ of 2001 and the ‘Arab spring movement’ in 2011 had down-turned the stock market performance markedly, signalling the compelled importance of investigating the impact of political conditions on stock market activities.

Conclusively, the relationship between population growth and economic growth is found to be positive in this study. In other words, the variables are found to

Question 2: Do you think Indian financial market will show a progressive trend in future?

Capital markets or today commonly known as stock markets have played a lesser role in investigating the role of financial development on economic growth since the researchers have always been more oriented to investigate the effect of banks. This can be explained by the fact that stock markets are a relatively new concept compared to banks. In the last three decades availability of data regarding capital markets and increase in theoretical literature suggests that well functioning stock markets can play an important role in economic development has spured research in this field. Trough instruments like diversification of risk, increased liquidity, corporate due diligence, manager control and collection and processing of important

This project is about how the Investor's Behavior is changing and they are now leaving behind the sacred investment options like the fixed deposits, company deposits, gold etc. Investors are now looking towards equity linked investment options.