Casual Relationship and Volatility of BSE Index With Special Reference to Indian Stock Market

Abstract

As per the Central Statistics Organization and International Monetary Fund, India has emerged as the fastest growing major economy in the world and by its strong democracy and partnerships the Indian economy is expected to be one of the top three economic powers of the world over the next 10 – 15 years. Trade liberalization, financial liberalization, tax reforms and opening up to foreign investments were some of the important steps which also include share market, which helped the economy to gain momentum. The essential part of an Indian economy is the movement of shares in Stock exchange. Stock Exchange offers a ready market for buying and selling the securities. Share Bazaar is the business market with crores of rupees being put to stake. The Bombay Stock Exchange, the premier share market, registers dealings worth several hundred crore a day. The purpose of this study is to analyze the Casual Relationship and Volatility of BSE Index with special reference to Indian stock market through the data collected from the period of April 2010 to March 2018. Using SPSS software, the Descriptive statistics and Correlation developed which shows the relationship between share price & various factors affecting the same and also its casual relationship are very helpful for policy makers, Institutional investors, traders and all other stakeholders to take investment decision.

Keywords: Economic, Investment, Inflation, Price, Institutional Investor, Investment Decision, Policy

JEL Classification: A1, D25, P22, E31, G23, G11, F68