Stock Market Volatility – A Study of Indian...

Stock Market Volatility – A Study of Indian Stock Market

Author Name : Shashidhara H.S, Dr. Shiva Shankar K.C

ABSTRACT

Stock Market is one of the most versatile sectors in the financial system, and Stock Market plays an important role in economic development. Stock Market is a hub where facilities are provided to the investors to purchase and sell their Shares, Bonds and Debenture etc. In other words, Stock Market is a platform for trading various securities and derivatives without any barriers. In Stock Market various companies are listed to their business venture through public issues. In the current scenario, long term investors are investing in the companies through Stock Market to attain and profit. In India listed Stock Market are Bombay Stock Exchange (BSE), the National Stock Exchange (NSE) and the Calcutta Stock Exchange (CSE). These three are largest Indian Stock Market. Volatility is a statistical measure of the dispersion of returns for a given security or Market Index. Commonly, the higher the volatility greater the risk associated with the security. Volatility estimation is important for several reasons associated with different people in the market. Developed markets continue to provide over long period of time with higher returns constituting low volatility. Indian market has started becoming informational more efficient compared to developed countries. The study would facilitate the reader to understand the past, current future aspects of Indian Stock Market.

Keywords: Shares, Indian Stock Market, BSE, NSE, Volatility.