Indian Capital Research Articles

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

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.

Regulating Debt Capital Market in India – Issues and Challenges

Indian Capital markets provide an important channel of financing through equity capital markets and debt capital markets. They help allocate risk, support growth and promote financial stability of a company or a corporate entity. In the last few years, the debt capital market of India has picked up pace of development propelled by government focus and support from regulators coupled with subdued credit growth from banks, however, it is yet to realize full potential. While globally bond market is much bigger than equity market, however in India, the scenario in not same. Whereas Indian equity capital market is considered equally efficient as compared to some of the most developed markets, bond market is still evolving. Hence, considering the large funding requirements public and private sector for economic recovery and growth, debt capital market holds huge untapped potential Hence the researcher would like to address the market and policy barriers impeding the realization of the full opportunity India presents to finance and vice versa. Present trends in capital markets development and to identify the factors that will encourage the development of a vibrant and resilient debt capital market in India. This dissertation focuses on how companies can excel by debt capital market. The researcher also focuses on applicable laws, new regulations and circulars issued by SEBI which brought a huge change in the Indian debt capital market. To critically analyze the regulatory requirements and also role of the banks in debt 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

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.

An Investigation into IPO Anomaly in the Indian Capital Market

An Investigation into IPO Anomaly in the Indian Capital Market

A STUDY ON IMPACT OF INVESTMENT BIASES OF RETAIL INVESTORS OF INDIAN CAPITAL MARKET WITH REFERENCE TO GEN Y AND GEN Z

The research study delves to understand the investment biases exhibited by retail investors in the dynamic Indian capital market, with a specific focus on two influential generational cohorts, Generation Y (Millennials) and Generation Z. The primary objective of this study is to investigate and analyse the various investment biases that affect the decision-making processes of Gen Y (Millennials) and Gen Z retail investors. By employing combine descriptive research design, like collecting data from 120 respondents through structural questionnaires to identify factors contributing to these biases, and analysed their effects on investment decisions. The findings of this research are expected to contribute to the enhancement of investor education programs and develop tailored strategies to enhance financial literacy, promote rational decision-making, and mitigate potential risks associated with biased investment behaviours. Overall, this study highlights the shed light on the implications of investment biases on the financial well-being of Gen Y and Gen Z investors, offering valuable recommendations for financial institutions, regulators, and educators to empower these cohorts in navigating the complex Indian capital market landscape. KEYWORDS: Investment Biases, Gen Y (Millennials) and Gen Z, Indian Capital Market

Do Stock Returns Reflect the Influence of the Pandemic on Businesses? An Empirical Study from the Indian Capital Market

This research study aims to explore whether the impact of the pandemic on different sectors was reflected in the stock market returns or not. The study has taken eight sectors of the Indian economy and started with the assumed impact of the pandemic on those industries based on popular perceptions. Then, it validated the assumed impact with the help of the analysis of the financial statements. Once the impact has been validated with the help of the financial statements, the effect on the stock market returns has been computed by comparing the changes in the stock returns for each industry with those in the index returns from the pre-pandemic times to post-pandemic times. The study reveals that the stock returns in most of the sectors reflected the influence of the pandemic on the businesses with a few exceptions. The exceptions where the stock market returns did not reflect the influence of the pandemic have been explained with the help of the measures taken by the businesses to mitigate the effect of the pandemic or with the help of other intervening factors.

Volatility Spillover Among the Sectoral Indices of the Indian Capital Market : Evidence from the COVID Period

Volatility Spillover Among the Sectoral Indices of the Indian Capital Market : Evidence from the COVID Period

XBRL Adoption and Information Asymmetry : Evidence from the Indian Capital Market

XBRL Adoption and Information Asymmetry : Evidence from the Indian Capital Market

Formation Of Strong Indian Capital Market – From The Annals Of History

Capital market that we see today in India has evolved over more than two centuries and its genesis lies in developments that took place during rule by East India companies. The nascent markets that emerged during the period have matured and are one of the most progressive markets in the world today. The Indian capital markets are robust, use best of the technologies and generate interest from across the world. This work draws inspiration from many printed resources that include, academic articles, reports and books. The paper attempts to identify the nascent stages of formation of capital markets in the country over time. From a historical perspective the Indian capital market is closely interwoven with the Bombay Stock Exchange which is also first exchange to be formed in Asia. The paper also covers shape of present-day capital market that has emerged over time. The paper explains how the capital markets have expanded across different cities for several decades and then, constrained with the environmental changes, they consolidated.

A Study on Performance Of Exchange Traded Funds in Indian Capital Market

A Study on Performance Of Exchange Traded Funds in Indian Capital Market

A Study on Interaction Between Global Exchanges and Indian Capital Market

The world is becoming increasingly interconnected, such that events in one region can have outcomes on the opposite side of the globe. The reality is that the financial markets are interlinked. International trade and globalisation of businesses mean that economic and geopolitical events in one nation will impact all other countries that do business with it. Also, since most currencies of the world are pegged to the US dollar, any developments in the United States could impact not just global currencies but also the stock markets. The most recent example of this is the hawkish stance of the US Federal Reserve (Fed). When the Fed announces a sharp rise in interest rates, the US dollar strengthens. This makes Indian stocks and other financial instruments more attractive to FIIs. Any change in FII inflow/outflow impacts the financial markets. In general, the Indian stock market shares a positive correlation with the global stock markets. This means that when global indices rise, Indian indices, such as the NIFTY, tend to rise in tandem.

Suicide hangings during pre-Covid-19 and Covid-19 - Myths debunked for the lower-middle-income group countries.

The psyche about the adverse effects of the Covid-19 pandemic has got fixed to a level of conviction that committing suicide is directly linked to coronavirus infection. The statistics of suicidal hangings for the pre-Covid-19 and the Covid-19 periods were compared in the Indian capital. The data analysis of the autopsy records showed the absence of temporal association between the incidence rates of suicides between these two periods. The study concludes that there was no net increase in suicide rates in the study population of this lower-middle-income group country during the Covid-19 pandemic.

Pricing of Shares Using Neural Networks Under Indian Capital Markets

Pricing of Shares Using Neural Networks Under Indian Capital Markets

Efficacy of financial derivatives instruments in Indian Capital Market: A critical observation

Efficacy of financial derivatives instruments in Indian Capital Market: A critical observation

Fintech In Indian Capital Markets

The advent of advanced digital technologies has already caused disruptions across many industries. The financial services sector is also collaborating with Fintech to transform digitally. Post- demonetization, the Indian government created a favorable environment for Fintech. Many new financial products are brought in by new start-ups. Fintech has created a paradigm shift in availingof Financial Services. The primarily data-driven capital markets have been positively affected by Fintech. However, the technology implementation is still at a very nascent stage, and there are impediments and challenges along the way. This paper studies the application of advanced digital technologies in Indian capital markets through secondary research. It analyses gaps addressed by advanced digital technologies. It opens new avenues for potential breakthroughs and the impediments and challenges for implementing the technology. Fintech is an abbreviation for financial technology, which offers alternative technologies for banking and non-banking finance services. Fintech is a new term in the finance sector. The primary goal of this paper is to examine the opportunities and problems in the fintech sector. It describes the fintech industry’s evolution and the current financial technology (Fintech) in the Indian finance market. Fintech makes transfers safer for consumers by digitizing them. The advantages of Fintech platforms include lowering operating costs and a user-friendly interface. Indian Fintech services have the maximum growth in the country. Its services will alter the habits and behavior of Indian financial institutions.

Edgeways Logic: The Space and Language of In-betweenness in New Delhi’s Roadside Shrines

This article focuses on the vernacular spaces of roadside tombs—or mazaars—of anonymous saints (commonly referred to as ‘Zinda Pir Baba’) in the heart of the contemporary Indian capital, New Delhi. These mazaars are located along the megacity's main roads and constitute a shared space where Hindus, Muslims, and Sikhs perform rituals in ways that do not classify or identify them as members of rival religious communities. The custodians of grave-shrines shape and reshape social and religious inclusiveness along vernacular and contemporary planes. Simultaneously, the makeshift environments of grave-shrines create a space of in-betweenness that ruptures gender roles, sidelines histories of power, and contests urban planning in India’s capital city.
 n in the contemporary Indian capital.

A Study on Changing Role of Foreign Institutional Investors (FIIs) in Indian Capital Market

The commencement of financial sector reform initiated in early 1990’s changed India’s policy on development strategy absolutely. The preliminary approach of financing current account deficit mainly by way of debt flows and official development assistance has altered to harnessing non-debt creating capital flows. Under this approach since September 14, 1992; Foreign Institutional Investors (FIIs) were allowed to invest in financial instruments in India and consequently Indian financial markets have changed greatly in its volume, size, depth and nature. FIIs are important to emerging economies because they bring funds and capital to businesses in developing countries. Foreign institutional investors play a very important role in any economy, since these are the big companies such as investment banks, mutual funds etc, who invest considerable amount of money in the Indian markets. These investors typically include hedge funds, mutual funds, insurance companies and investment banks among others. FIIs generally hold equity positions in foreign financial markets. Due to this, the companies invested in by FIIs generally have improved capital structures due to healthy inflow of funds. Thus, FIIs facilitate financial innovation and growth in capital markets. The entry of an FII can cause a drastic swing in domestic financial markets. It increases demand for local currency and directs inflation. Therefore, there are restrictions put by the managing authority of a country on how much stake FIIs can hold in the domestic company. This ensures that the FII’s influence on the company is limited, so as to avoid exploitation. However, not every FII will make an FDI in the country it is investing in. FIIs directly impact the stock market of the country, its exchange rate and inflation. FIIs can invest in listed, unlisted, and to-be-listed companies on the stock markets, in both the primary and secondary markets. This paper tries to analyse the changing role of FIIs in Indian capital markets because of their increasing share in the market.

FII Flows and Indian Capital Market: A Periodically Comparative Study on NSE Nifty Sectoral Indices

Stock market plays a vital role in growth and development of a country and also acts as a most important pillar of an economy. This research attempts to investigate the relationship and influence of FII on the National Stock Exchange’s sectoral market indexes. To check the stationarity of the series ADF is used while regression is used to find out the impact of FIIs on the sectors of NSE. To measure the causality between the two, Granger causality test is applied. A comparative analysis of monthly and quarterly data has been done from 2006 to 2020. The paper concluded that FIIs is having significant relationship with sectoral indices. The Granger causality test found that FIIs have unidirectional causality relationship with energy, financial services, Infrastructure and MNC and no causal relationship with Bank, India consumption, Metal, PSE, and service sector using quarterly data.