The Correlation Of Indian Stock Market

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Abstract

The stock market is witnessing keen activities and is gradually more gaining Importance. Post the1997 East Asian disaster which had caused significant reduction in asset prices and stock markets in quite a a small number of Asian countries, these economies bang back. These economies maintained high interest rates thereby creation them attractive to foreign investors. As a result these economies customary a large inflow of funds and experienced a theatrical run-up in asset prices. As a part of market amalgamation, the capital market of India is no longer cut off from international economic measures and their stock index travels. This paper finds the correlation of Indian Stock market with five other major Asian economies: Japan,
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The Bombay Stock Exchange (BSE) is one of the oldest exchanges crossways the world, while the National Stock Exchange (NSE) is among the best in terms of complexity and advancement of technology. The Indian stock market scene really picked up after the opening up of the economy in the early nineties. The whole of nineties were used to experiment and fine tune an efficient and effective system. The ‘badla’ system was stopped to control unnecessary volatility while the derivatives segment started as late as 2000. The corporate governance rules were gradually put in place which initiated the process of bringing the listed companies at a uniform level. This opening up of the system led to increased integration with heightened cross-border flow of capital, with India emerging as an investment ‘hot spot’ resulting in our stock exchanges being impacted by global cues like never before. The study pertains to comparative analysis of the Indian Stock Market with respect to various asian counterparts. Exchanges are now crossing national boundaries to extend their service areas and this has led to cross-border integration. Also, exchanges have begun to offer cross-border trading to facilitate overseas investment options for investors. This not only increased the appeal of the exchange for investors but also attracts more volume. Exchanges regularly solicit companies outside their home territory and encourage them to list on their
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