Indian Capital Market Research Articles

SEBI’S ATTITUDE TOWARDS MARKET PLAYERS AND PRESENT STATUS OF INVESTORS

Small investors contribute significantly to national savings, which may be utilized to develop the nation's capital. In recent memory, investor complaints have escalated, and in order to safeguard investors, SEBI has issued recommendations for issuing businesses, brokers, and other intermediaries. SEBI is the regulator for the securities market in India. It was formed officially by the Government of India. It has been found that SEBI played a major role in the development of the Indian capital market. The present study aims to analyse the roles and responsibilities of a capital market regulator and to assess the SEBI’s attitude towards market players. SEBI should develop a specialized investment protection website. This website should receive widespread awareness. Every prospectus for an IPO should include a sentence advising investors to check the Investors Protection website before investing. SEBI automatically receives a copy of any complaints submitted with the stock exchange or investor organization. The issue may be tracked, and if it is not handled within an acceptable time window, an automated notice can appear on SEBI's server. This would indicate to SEBI that it should intervene now to examine further in this specific issue.

Analysis of Investment Factors and Decisions among Generation Z and Generation X in Indian Capital Market

This study highlights the disparate behaviours, motives, and methods of these two unique generations as it investigates the investment fervour of Generation Z and Generation X in the Indian capital market. Due in large part to historical financial practices and economic volatility, Generation X favours conservative investment strategies, placing a higher value on stability and long-term growth through well-established asset classes like real estate and mutual funds. As a result of growing up in a digitally first world, Generation Z, on the other hand, has a more daring attitude when it comes to investing and is frequently drawn to high-risk chances like cryptocurrencies and Capitals that are influenced by social media trends. The study utilises a mixed-methods approach, integrating quantitative surveys and qualitative interviews to evaluate the investing choices and behaviours of 393 participants, split evenly between the two groups. The results show notable variations in financial literacy, risk tolerance, and how technology affects investment choices. The report also emphasises how crucial it is to match financial services to the distinct requirements and values of every generation, especially as Generation Z’s emphasis on ethical and sustainable investing is changing the industry. Financial institutions may build a more knowledgeable and empowered investor community by better engaging with their clients by taking into account these generational disparities.

A Study on Optimal Equity Portfolio in the Indian Capital Market

This study evaluates optimal equity portfolio construction in the Indian capital market by applying the Sharpe Single Index Model. Data from 20 companies in the NIFTY 50 index are used to analyze risk-return relationships and identify companies for portfolio inclusion. The study concludes that constructing an optimal portfolio with selected stocks, such as Hero MotoCorp and Bharat Petroleum, based on their risk-adjusted returns, offers a strategy for maximizing returns with controlled risk

A Study on performance of companies issuing bonus shares

The study provides a succinct overview of the findings from an in-depth analysis of bonus shares performance among selected Indian companies over the past two years. The study focused on assessing under pricing trends, post-listing shares performance, sectoral variations, investor sentiment dynamics, and regulatory impacts. The analysis revealed that many bonus shares experienced significant under pricing at their initial listing, particularly notable in high-demand sectors like technology.Shares performance varied across sectors, with companies like private and public sector shares performance over the long term. This suggests effective bonus shares . Moreover, the study identified positive shifts in bonus shares ,companies encourage more retail investors participation in their stock by lowering the price per shares and adding liquidity. And provide an alternative to issuing a dividend payment for rewarding investors and finally they reflect that the company is in a financially sound position to keep growing and generating shareholder value . In the study we have taken 5 shares which announced bonus last year and analzse the return we observed positive return in the sample taken. Bonus shares represent a critical juncture in a lifecycle of company, its transition marking from private ownership to becoming a traded publicly entity. For companies, bonus shares offer opportunities to access capital markets, fund expansion initiatives, and strengthen market position. For investors, bonus shares provide avenues for portfolio diversification and potential capital appreciation, albeit with associated risks. Analyzing bonus shares performance helps in identifying key success factors and challenges faced by companies in navigating the complexities of the Indian capital market. This study aims to comprehensively analyze and compare the bonus shares performance of the following 5 Indian companies: Power finance Power grid Safari Sonata Berger paints The objectives include evaluating their initial market reception, post-listing price movements, and strategic implications for stakeholders. By examining these bonus shares issues, we aim to discern trends, drivers of success, and challenges faced by companies across diverse sectors in Indian market.

Testing of Semi Strong form of Market Efficiency of Indian Capital Market with Reference to Annual Dividend Announcement

The investment decision is influenced by many factors, of which one such factor is the return. The shareholders may get the return in the form of dividends which affects the share prices. The behavior of stock prices is unpredictable as price movement for different activities will move in different ways. The stock price influence activities can be divided into economic and corporate activities. The impact of economic activities will be more or less the same on all the stock prices, while the impact of corporate action varies from one stock to the other. Dividend payment is one of the essential corporate actions that will impact the behavior of stock prices. This research highlights the impact of dividend payment one the behavior of stock prices and their abnormal returns.

DISAPPEARING THE DAY OF THE WEEK EFFECT ON RETURN TO INVESTORS: NOVEL EVIDENCE FROM INDIAN STOCK MARKET

The efficiency in emerging markets is becoming more important as the trend of investment in these markets is accelerating nowadays. The level of market efficiency influences an investor's investment strategy because of its improper valuation. The improper valuation of securities may lead to abnormal gains for the investor. On the other hand, abnormal gain in a perfectly efficient market is impossible as the share price absorbs all the information available in the public domain. However, efficiency in its finest sense is a distant reality. Many researchers have pointed out different levels of efficiencies, including the presence of calendar anomalies. The purpose of the study is to capture the effect of the day of the week on the stock return and volatility in India. Daily time series data of Sensex and Nifty were collected from the two prominent exchanges of India, i.e. Bombay Stock Exchange and National Stock Exchange websites, for a period of four years. After validating stationarity with ADF and Phillip-Perron tests, the study used GARCH, EGARCH and TGARCH models to capture day impacts on stock return and volatility. The study reveals that the Tuesday effect persisted in the Indian stock market during the study period. Moreover, the TGARCH model was found to be the most suitable model for describing volatility behaviour in the Indian stock market. As other days in the week were less significant, the study's findings suggest that the gradual disappearance of day affects the Indian capital market. Another study finding is the significance of the leverage effect, which implies the increased role of bad news over good news while capturing the day-of-the-week effect. Considering the above facts, the present study's findings contribute to a deeper understanding of stock market dynamics and the challenge of the day-of-the-week effect on market efficiency.

A Study on Beta Analysis of Selected Pharmaequity Stock with Special Reference to National Stock Exchange

Capital developments across the world have influenced Indian capital market also in the last 15 years. Capital markets in India have witnessed the change and have attained remarkable degree of growth. With the opening up of the economy for multinationals and liberated economic policies, Indian economy is achieving newer-horizon every day. But these new horizon has also brought new challenges along with them .The biggest challenge faced by Indian corporate is to protect their operating profit from these risks. Hence risk management has become very essential for corporate house in order to survive. The study on beta analysis of selected Pharmacy equity with special reference to National Stock exchange’ finds out how beta will affect the market. This study helps to understand the market conditions and their movement. Meanwhile it helps to understand the percentage of risk happened in selected Pharmacy shares and also how it will get affect the economy of the country. The main scope of the study explains how the selected pharmacy is associated with NSE.

The Effect of Institutional Ownership, Leverage, and Company Growth on the Value of Companies with Financial Distress as an Intervening Variable

According to BPS and cnnindonesia.com, Indonesia's economic growth for the initial period of 2020 or quarter 1 was 2.97%, this makes Indonesia's economic growth conditions in 2020 the lowest in the last 20 years. IDX Statistics Report for 2022, the properties & real estate sector in the capital market index is negative and has the lowest ranking, namely -19.11%. This research aims to determine the effect of the GCG variable with a proxy for Institutional ownership, the Leverage variable with a Debt to Equity Ratio proxy, and the Company Growth variable with a sales growth proxy on Company Value with a Tobin's q proxy with Financial Distress as an intervening variable. The total sample for this research is the properties and real estate sector companies listed on the IDX in 2018 - 2022, totaling 40 issuers. The analysis method used is multiple linear regression, classical assumption test, F test, T test, GLM mediation test, using the Jamovi data processing tool. The research results of institutional ownership, DER and Sales Growth influence company value, institutional ownership and DER influence financial distress. Financial Distress is unable to mediate the relationship between Sales Growth and Company Value.

INVESTOR PERCEPTION TOWARDS STOCK MARKET FINANCE

This study aims to measure the investors’ perception towards the Indian capital market with reference to National Capital Region (NCR) investors of India. This research is a descriptive research study, in which systematic sampling technique is used. Trail survey is used to select the sample size, validity, and reliability of the instrument. 120 samples are selected for this study. Major findings of this study include, age has significant impact on investment, and educational qualification has significant impact on tax advantages. 119 functional variables are used in this study to measure investors’ perception. These variables have a 72% impact on measuring investor perception. Charges, liquidity, and investment attributes are mediating factors for investors’ perception. Investment influences and investment benefits are having high relevance. Keywords: Investment attributes, Investment benefits, Liquidity, Profitability. Keywords: Investment attributes, Investment benefits, Liquidity, Profitability.

Examining the Random Walk Hypothesis: An investigation of the Indian stock market

Using the Efficient Market Hypothesis (EMH) as the theoretical foundation, this research study explores the Random Walk Hypothesis in the context of the Indian stock market. By using the Runs Test to analyse the daily closing prices of eight well-known Indian companies between January 1, 2018, and June 30, 2021, the study finds that patterns in stock prices in the Indian stock market show weak-form efficiency and are consistent with the Random Walk Hypothesis. The analysis indicates that stock price movements are largely unpredictable and devoid of discernible patterns, aligning with the notions posited by proponents of the Efficient Market Hypothesis. The research underscores significant implications, validating the presence of weak-form efficiency and emphasizing the need for alternative analytical approaches in investment strategies. Despite inherent limitations, this study contributes to ongoing discourse on market efficiency and financial dynamics, advocating for interdisciplinary approaches and global perspectives to refine understanding and facilitate more informed investment decisions in the Indian capital market.

A Study on Impact of Foreign Institutional Investors on Indian Capital Market Volatility

A Study on Impact of Foreign Institutional Investors on Indian Capital Market Volatility

Exchange Rates and Capital Market Instruments – Analysis Based on the Example of Switzerland before and during the Covid-19 Pandemic

The purpose of the article. The aim of the article is to present factors influencing foreign exchange rates and to examine the relationship between them and stock and bond indices in Switzerland in the period before and during the COVID-19 pandemic. The hypothesis that the studied relationships changed as a result of the turmoil caused by the pandemic crisis was verified.
 Methodology. To verify the hypothesis, linear and non-linear functions were analyzed, and Pearson's correlation indices between the examined instruments were calculated.
 Results of the research. As a result of the analysis, it was found that the relationship between the CHF exchange rate index and stock indices is non-linear, and the relationship between the CHF exchange rate index and bond indices is linear. Correlation coefficients before the pandemic indicated strong relationships between the CHF exchange rate index and the examined capital market indices, and moreover, the relationship with stock indices was positive and with bond indices negative. It was found that during the pandemic, the correlation with bond indices changed and became positive. The motivation of the analysis is related to the spotlight on a Swiss franc as a result of numerous financial decisions related to this currency.

Market Capitalization and Its Impact on Equity Valuation a Mixed Method Study of The Indian Capital Market

An investor must perform research on a stock before investing in it. It is critical for the intelligent investor. As a result, stock prices have long piqued the interest of investors. Researchers have worked hard to identify the elements that influence stock prices and so returns. In the current study, 300 companies listed on India's National Stock Exchange (NSE) were divided into three categories based on market capitalization. The study relied on both primary and secondary data to reach its findings. Logistic regression is used to examine secondary data in the form of historical financial information. The outcomes of secondary data analysis are then confirmed using primary data gathered through interviews with domain experts. The study also revealed the importance of the new variables PEG ratio and economic value added (EVA) in Indian scenario to predict the market price of large cap companies. The study's findings can help market participants such as fund managers, stocks analysts, portfolio managers, retail investors, and high-net-worth individuals. The findings of the study will also contribute to the current body of knowledge on equity valuation.

A Microstructure Study of Indian Corporate Bond Market: A Review

This Review study explores various dimensions of the Indian capital market, encompassing both equity and bond markets. It delves into the influence of equity market factors, macroeconomic variables, and corporate bond market growth on the overall financial landscape. The relationship between equity market returns, equity market volatility (VIX), and the rupee-dollar exchange rate on bond yields. They highlight that increasing volatility in the equity market leads to a higher demand for fixed income securities, subsequently reducing bond returns. The underscores the significance of a robust corporate bond market for financial system stability, credit availability, and mitigating corporate sector crises. It reviews the growth of the Indian corporate bond market and its implications for monetary, fiscal, and economic variables. The results indicate that a comprehensive corporate bond market does not exhibit a significant positive or negative association with these variables. However, GDP emerges as a crucial factor for India's bond market development, particularly in terms of foreign participants. Lastly, the influence of macroeconomic variables on the Indian corporate bond market over a 23-year period. They reveal a significant correlation between corporate bond market issuance and foreign exchange reserves. Through multiple regression analysis, they found that all selected variables, except GDP and trade openness, significantly explain the volumes of corporate bonds. Collectively, their findings contribute to a comprehensive understanding of the interplay between equity market dynamics, corporate bond market growth, and macroeconomic factors in the Indian capital market. The study provides valuable insights for policymakers and investors, aiding in informed decision-making regarding investment strategies, market stability, and economic growth.

Socio-economic Groups and Investment Pattern Income Below 5,00,000 in Ghaziabad City

Nowadays, the investment companies have emerged as the most advanced component in Indian financial market. Reforms in the Indian economic system and the opening up of the economy have been the purpose for the tremendous growth in the Indian capital market. This study examine the impact of socio-economic variables on the attitude of investors towards investments. Every individual investor wants to get higher returns from the savings/amount they invest in different financial investment options. Referring on individual income and their different lifestyles pattern, different income groups invest their money accordingly. This study invеstigatеs thе lеvеl of awarеnеss among diffеrеnt sеgmеnts of investors, across a divеrsе spеctrum of invеstmеnt possibilitiеs. It еxaminеs how demographic factors such as agе, еducation and occupation, affеct invеstors' knowlеdgе about diffеrеnt options and highlight the potеntial shortcomings and opportunitiеs for financial awareness initiativеs. To achieve this, 100 respondents of Ghaziabad city, from different socio- economic profiles were surveyed. The result also focus that certain factors like gender, awareness about the investment avenues, age of investors etc. make significant impact while determining the investment patterns of investors. Further, it is observed that status of income also influences the investment decisions.

Size, Value and Momentum Returns in Indian Stock Market

The study investigates the applicability of factor-based investing in the Indian stock market, particularly focusing on the size, value, and momentum factors. Using data from 2005 to 2022 and employing the Fama-French methodology, the research examines the performance of these factors and their impact on investment returns. The findings reveal that while the size factor yielded negative returns, both the value and momentum factors exhibited positive performance. Notably, momentum emerged as the most effective strategy, delivering substantial returns and outperforming other factors. Additionally, the study analyzes the Equity Risk Premium (ERP), indicating insignificant real returns in the market during the study period. Drawdowns and volatility are assessed for each factor, highlighting the inherent risks and fluctuations associated with factor based investing. The research emphasizes the significance of integrating factor analysis in investment strategies and provides insights into the dynamics of the equity segment of Indian capital market.

Impact Analysis Of Monetary And Fiscal Policies On Indonesia’s Economic Growth

After the Covid-19 pandemic, the world faced economic challenges stagflation, namely high inflation and declining economic growth. To overcome this, the Government made arrangements through monetary and fiscal policies. This study analyses the effect of monetary and fiscal policies on Indonesia's economic growth. This research has eight obtained monetary, fiscal and other macro-economic variables, a novelty compared to the previous researcher. Based on the impulse response analysis in the Vector Error Correction Model, the highest impacted variables to maintain economic growth were the growth of income tax and capital market index, and to negatively impact were exchange money and government expenditure. Over an extended period, it shows that the increase in inflation, money exchange, number of broad-money, interest rate, and government expenditure will impact the decrease of economic growth. In contrast, the increase in government income from tax and capital market indexes will impact the increase in economic growth.

Biases in Capital Market Instrument Investing Decisions: A Study from India

This study examines the influence of different behavioral biases on the investment choices made by individual investors in the Indian capital market. The study utilizes a cross-sectional design, which entails gathering a substantial amount of data at a specific point in time. The study employed a survey methodology to collect data from a sample of 497 individual investors using purposive and snowball sampling. The data was collected using structural equation modeling (SEM), utilizing SPSS version 25 and AMOS version 26 as statistical software. This study characterizes individual investors as displaying irrational conduct. The study reveals a significant and positive association between representativeness, anchoring, and loss aversion biases and the investment decision-making process of individual investors in India. This study will enhance the current corpus of literature by examining the field of behavioral finance, which is gaining acknowledgment. Furthermore, few researchers have specifically examined these biases in developing countries, such as India.

An Investigation into IPO Anomaly in the Indian Capital Market

An Investigation into IPO Anomaly in the Indian Capital Market

A Comprehensive Analysis of the Top 25 Equity Mutual Funds in India for Informed Investment Choices

The Indian capital market offers a variety of investment opportunities to investors, allowing them to acquire positions in numerous industries and ensure a profitable return. Among numerous financial instruments, equity funds ensure the smallest risk and maximum return to investors. The growth and development of various mutual fund products have been shown to be one of the most effective catalysts for creating significant investment growth in the capital market. In this situation, careful monitoring and evaluation of mutual funds became critical. Therefore, selecting lucrative mutual funds for investment may be a critical concern. This study examines the performance of selected equity mutual funds offered for investment by various fund companies in India, with an emphasis on large-cap, mid-cap, and small-cap fund schemes in terms of risk-return relationships. The primary objective of this research is to evaluate the financial performance of selected equity funds using statistical measures such as alpha, beta, Sharpe ratio, Sortino ratio and expense ratio. The researcher concluded that 17 of the 25 funds performed well and gave significant returns in 6 months and one year. The researcher discovered that the investor should examine the risk ratios of the fund before investing. The results of this research will be useful for investors in their investment decisions.