A study on Comparative Analysis of Indian Stock Market with International Markets

Abstract

The tock market is witnessing heightened activities and is increa ingly gaining importance worldwide. ln the present scenarios of Liberalization, Privatization & G lobalization and the subsequent integration of the vari u global markets, this research study captures the similarities, patterns and trends in the accivitie and movements of the Indian t ck Exchange and its comparison co the other international counterparts. Thi resea rch tudy cover Korea n tock exchange (KSE), Hong Kong tock exchange (H E), Financial Times and the Lo ndon cock Exchange (FTSE), Tokyo Stock exchange (TSE), ew York tock Exchange (NYSE), Ru sian tock exchange (RSE) from various aspects like socio- politico-economic backgrounds etc. Both the National Stock Exchange of Indian Limited (NSE) and the Bombay Stock exchange (BSE) are used in this research study as a part of Indian Stock Exchange. The time period u ed in chi study has been divided inco variou eras and pha e to test the correlation between the various International Stock Exchanges to prove that the Indian Stock Exchange have become more integrated with its International Stock Market and its reaction are in Ii ne with that are seen worldwide. ln this study, 20 years data has been collected and used to draw Zohra Bi* I Abdullah Yousuf** I Aatika Bi*** the o nclusion of this study. For data analy is, both qualitative and quantitative technique is used co acces the impact of International Stock Exchange on Indian Scock Market. In qualitative analy is, Indi an Stock Exchange from the point of view of Market Capitalization, number of listed securities, listing agreements, circuit fi lters and settlement & trading cycle. These parameters have used co look at selected important aspects of any cock exchange, viz., the market capitalization gives an idea about the ize of the respective exchange ; whereas the number of listed securitie acts as an indicacor for the volume and liquidity of any exchange. The listing agreements take care of the governa nce issue, while circuit filters give an insight into the risk management framework of the said exchange. Finally, the efficiency of a stock exchange has been measured in term of its settlement proce s. Whereas, in quantitative analysis, mainly the co rrelation an alysis, exponential trend analysis and the risk-retu rn analysis has been u eel to validate the hypothesis.