Thesis on indian capital market

When the variables are restricted and tested individually, we find, only the output, money supply and exchange rates are statistically and significantly forming the core of the long-term relationship with the stock market see Table 8.

National and nbsp; Determinants of capital market in the new member EU countries in CEE transition countries, evidence in favour of the thesis that countries with more developed financial systems have.

Empirical methodology, findings and their interpretations are detailed in Section 4. The relationship between exchange rates and stock returns primarily depends on the nature of the economy.

Empirical Methodology and Findings 4. The nature of rebalancing, indeed, will depend on possible impact of money supply, both good and bad, on inflation, discount rate, corporate earnings and asset prices.

Capital Market Development and Economic — UT Student Theses is that the Bolivian capital market has not the capital market is able to influence the economic dynamics of the country.

In his seminal work, Fama [1] suggests that there exists a negative relationship between stock excess returns and inflation because higher inflation rates induce higher nominal risk-free returns that results in a decrease in asset prices. Thus, one can hypothesize, increase in money supply results in increase in investments causing higher economic growth which in turn contributes more activity in the stock market.

Indian Capital Market

Precisely, objective of the current thesis is to suggest how the Indian stock market interacts, influences and is influenced by macro economy over a period that ranges from January, to April, Lessons of earlier studies of both finance and development economists suggest that interrelationship between interest, real sector and share prices is still unclear and researchers may find enough evidences in support of their position.

The general public was so unfamiliar with share certificates that Dhirubhai is rumoured to have distributed them to educate people. Ng-Perron test for unit root. Introduction Stock market as an economic entity can survive if and only if movement in market remains closely intertwined with macro economy.

The opening of the Suez Canal during the s led to a tremendous increase in exports to the United Kingdom and United States.

The claim, in a sense, asserts that a well functioning market can only be treated as a boon to the society, in absence of which we have to search for alternative means of financing the real sector.

The Reliance public issue and subsequent issues on various Reliance companies generated huge interest. The Causal Relationship We have estimated the Granger causal relationship between the variables within the framework of vector error correction model using the optimum lag order, the deterministic component and one cointegrating relationship.

In his seminal work, Fama [1] suggests that there exists a negative relationship between stock excess returns and inflation because higher inflation rates induce higher nominal risk-free returns that results in a decrease in asset prices. As the allocative efficiency of the market around the globe varies, we find divergent empirical evidences on stock return and output.

The relationship between exchange rates and stock returns primarily depends on the nature of the economy.

Testing for prima facie causality is considered by the scholars as the first major step towards concluding causality between two variables in presence of other variables [67].

The Causal Relationship We have estimated the Granger causal relationship between the variables within the framework of vector error correction model using the optimum lag order, the deterministic component and one cointegrating relationship.

Organisation of Stock Exchanges; 4. Estimations based on the monthly data provide a short-run insight and at the same time capture more macroeconomic relationship than the very high daily or low yearly frequency data [48].

Findings of the studies vary but the importance of a competitive market in an economy is unquestionable [1] -[11]. The stock markets have had many turbulent times in the last years of their existence. There is ambiguity on what procedure of testing should be adopted and how much this procedure is reliable [49] [50].

Against this backdrop, the present paper aims to investigate the dynamic relationship and predictive causality between the select macroeconomic variables and the stock market in India. However, Abdullahand Hayworth [37] observed that US stock returns are related positively to inflation. Indian investors, who applied for these shares, encountered a real lottery because those were the days when the CCI decided the price at which the shares could be issued.

Testing for prima facie causality is considered by the scholars as the first major step towards concluding causality between two variables in presence of other variables [67].

Fama [1] posits that the stock returns are positively related to output. Issues Affecting the Development of Capital Markets: The removal of estate duty and reduction of taxes led to a swell in the new issue market and there was a deluge of companies in Dhirubhai can be said to be the father of modern capital markets.

PhD thesis, Middlesex University. The negative relationship between long-term interest rate and stock price virtually negates the arguments of neo-liberalists who theorized higher interest rate equilibrium attracts more savings thus investment grows that allows investors to earn more return in the market.

A PhD THESIS ON "ROLE OF FOREIGN INSTITUTIONAL INVESTORS IN INDIAN STOCK MARKET" 1 | P a g e Chapter 1: An Overview dissertation skills for business and management students Of Indian Capital Market 1. page |2 a project work on analysis of credit rating agencies and their potential impact on developing countries with reference to india and 2/5(1).

Article shared by. Here is a compilation of essays on ‘Capital Market’ for class 9, 10, 11 and Find paragraphs, long and short essays on ‘Capital Market’ especially written for school and college students. The study of Indian capital market begins with the introduction of the capital market what is capital market & this study shows that the capital market is the backbone of the Indian economy.

Indian Economic Association is a registered body of Indian essay on our earth in hindi Economic thesis on indian capital market Professionals, established way back in. The capital market is also dependent on two sub-markets – the primary market and the secondary market.

Indian Capital Market

The primary market deals with newly issued securities and is responsible for generating new long-term capital.

Thesis on indian capital market
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