Stock Price Movement in India

Running head: STOCK PRICE MOVEMENT IN INDIA
STOCK PRICE MOVEMENT IN INDIA
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STOCK PRICE MOVEMENT IN INDIA1
Abstract
This research paper discusses about Indian Stock Market and its volatility. The positivism
approach has been adopted for reviewing the data. While collecting the data the secondary data
collection method has been used. The data are mainly adopted from different research, literature
review and from Indian Stock Market websites. The data are also collected from the Bombay
Stock Exchange and National Stock Exchange websites. This research paper mainly provides the
remedy to control the volatility in the market.

STOCK PRICE MOVEMENT IN INDIA2
Table of Contents
INTRODUCTION...........................................................................................................................3
Introduction......................................................................................................................................3
Historical Background.....................................................................................................................4
Present Day Trading Mechanism.....................................................................................................5
Settlement and Trading Hours of Indian Stock Market...................................................................5
Market Index....................................................................................................................................6
Indian Stock Market Regulation......................................................................................................6
Investors in Indian Stock Market.....................................................................................................6
Investments in Foreign Entitles.......................................................................................................7
Reasons for Volatility......................................................................................................................7
Research Objectives.........................................................................................................................7
Research Questions..........................................................................................................................8
RESEARCH METHODOLOGY....................................................................................................9
Introduction......................................................................................................................................9
Research Philosophy........................................................................................................................9
Research Approach........................................................................................................................10
Research Strategy..........................................................................................................................10
Research Design............................................................................................................................11
Data Collection..............................................................................................................................11

STOCK PRICE MOVEMENT IN INDIA3
Ethical Issues.................................................................................................................................12
DATA ANALYSIS.......................................................................................................................13
Causes of Volatility in Indian Stock Market.................................................................................13
Different Aspects of Indian Stock Market.....................................................................................16
Effects of the Stock Market in Indian Stock Price........................................................................17
Future Prospects of Indian Stock Exchange Market......................................................................18
Conclusion.....................................................................................................................................19
Conclusion.....................................................................................................................................19
Limitation......................................................................................................................................20
Findings.........................................................................................................................................20
Reference.......................................................................................................................................21

STOCK PRICE MOVEMENT IN INDIA4

STOCK PRICE MOVEMENT IN INDIA5
INTRODUCTION
Introduction
The stock market of India plays an important role in financing the corporate sector of the
country. Thus, the activities of stock market of India fall under the purview of the economic
liberalization. The Indian Stock market not only assists the corporate sector, but it also looks
after the direct investments from the stockholders, monitoring the management of the company
and even checking the liquidity of the investors. The stock market plays an important role as the
platform where the companies, governments and the investors can trade. The stock market
provides the entrepreneurs and the governments to mobilize the resources directly and in the case
of investors the stock market looks after the liquidity (Nath Sahu, Bandopadhyay & Mondal,
2014). The increase in the liquidity of the market, stock market helps the market to allocate
resource properly and also increases the prospects of long term economic growth. In India the
economic liberalization provides emphasis on the stock market since 1980s. Today, Indian Stock
Market reached the international standard by increasing the operating efficiency.
The concept of stock market implemented in India in 1875. In 1875 the Bombay Stock
Exchange was established. After its inception the shares are bought and sold in the share market
by utilizing the outcry system. At that point of time the stock market decides the day’s price of
the company. Buyers use to bid for the shares and earned the shares at the highest share price.
Similarly, seller use to bid the share at the lowest price and sell the share. Presently, these all
jobs were made by the computer. In India, there is total 23 share market present. Among these 23
stocks exchange National Stock Exchange, Bombay Stock Exchange and Calcutta Stock
Exchange are the largest and most prominent one.