Financial Viability of Selected Products in Mumbai Stock Exchange

Abstract

Stock exchange markets play an essential role in the economy. India has one of the largest stock exchange markets where corporate entities and investors engage in transactions that involve financial assets such as shares, debenture, bonds, and government securities. Mumbai is home to some of the largest stock exchanges in the emerging countries, apart from China and Brazil, to mention a few. Its financial market has attracted investors and large multinationals from developed economies such as the United States and Canada. However, this market in Mumbai is volatile and characterized by fluctuations in the prices of financial assets. The previous research indicates that Mumbai stock exchanges are reasonably and financially viable, with many factors shaping its sustainability. The results suggest that inflation, government policies, foreign institutional investments, political stability, and international elements such as the fluctuations in oil prices dramatically influence the financial viability of financial instruments. The researcher, in this context, explored the topic with a primary objective to determine the financial sustainability of the commercial products listed in the stock exchange markets in Mumbai. The scope of the study, in this case, covered Bombay and National Stock Exchange. The findings are essential as they add knowledge to the existing literature and also can be used by portfolio managers in decision-making. The researcher used snowball and sampling techniques to sample respondents from a population of 56. The descriptive research design was used in the study, and the results were analyzed using multiple techniques. These are SPSS, Likert scale method, and simple tabulation.