Open Access Open Access  Restricted Access Subscription Access
Open Access Open Access Open Access  Restricted Access Restricted Access Subscription Access

A Study on the Impact of Stock Market Volatility in India with Reference to Equity Investors


Affiliations
1 Department of Commerce, Guru Nanak College (Autonomous), Velachery, Chennai – 600042, Tamil Nadu, India
     

   Subscribe/Renew Journal


The securitized investment which provides safety as well as liquidity for the investors in the current scenario because of the fluctuations happening in the stock market. The time horizon for trading is comparatively higher than stock market investment avenues, hence able to earn a good return by taking the right decision at the right time by analyzing the market, hence it is found that most of the equity investor prefer to invest in securities even though high volatility in stock market. The equity investor believed that stock market volatility is favorable to invest in infrastructure and automobile sector. The volatility is very high in the automobile sector is ranked at first among the BSE listed security followed by Infrastructure and FMCG having the highest volatility. Further, it concludes that the stock market volatility is impacting positively as well as negatively in order to make an investment decision.

Keywords

Equity Investor, Impact, Investment and Decision, Liquidity, Stock Market, Volatility.
Subscription Login to verify subscription
User
Notifications
Font Size


  • Ahmed, M. & Aal, A. E. (2011). “Modeling and forecasting time varying stock return volatility in the Egyptian stock market”, International Research Journal of Finance and Economics, 2011, Vol. 78, pp. 96-113.
  • Batra, A. (2004). “Stock return volatility patterns in India”, Indian Council for Research on International Economic Relations-Working Paper, pp. 124-152.
  • Bekaert, G. & Wug, G. (2000). “Asymmetric Volatility and Risk in Equity Markets”, Review of Financial Studies, 2000, Vol. 13, No. 1, pp. 1-42.
  • Bollerslev, T., Frederiksen, P., & Nielsen, M. (2010). “Continuous-time models, realized volatilities, and testable distributional implications for daily stock returns”, Journal of Applied Econometrics, 2010, Vol. 25, No. 2, pp. 233-261.
  • Caporin, M. & McAleer, M. (2006). “Dynamic asymmetric GARCH”, Journal of Financial Econometrics, 2006, Vol. 4, No. 3, pp. 385-412.
  • Changyun, W. (2003). “The behaviour and performance of major types of futures traders”, The Journal of Futures Markets (Published online in Wiley Inter Science), Vol. 23, No. 1, pp. 1-31.
  • Cohen, J. (2003). “Applied Multiple Regression/Correlation Analysis for the Behavioral Sciences”, (3rd Edition.), Mahwah, NJ: Published by Lawrence Erlbaum.
  • George, D. & Mallery, P. (2001). “SPSS for Windows Step by Step: A Simple Guide and Reference- updated version No.11.0”, (6th Edition), Published by Pearson education south Asia, Boston.
  • Gurusamy, S.& Vengatesan, C. (2015), “Role and relevance of credit ratingAs study with special reference to retail equity investors in India”, Indian Journal: Sumedha Journal of Management, 2015, Vol. 4, No. 1, pp. 97-112.
  • Gurusamy, S., Vengatesan, C., Hemavathy, P. (2015). “Role and significance of credit rating with special reference to Indian retail equity investors - An empirical investigation”, Published by Management Trends: Saurashtra University, Vol. 12, No. 1&2, pp. 52-64.
  • Hemavathy & Gurusamy, S. (2014). “Impact of domestic gold prices on stock market indices with special reference to Global Financial Crisis- An empirical study”, 2014, Vol. 10, No. 1, pp. 1-8.
  • Karunanithy, B., & Azhagaiah, R. (2015). “Modelling Stock Market Volatility: Evidence from India”, Journal of Springer (Managing Global Transitions), 2015, Vol. 13, No. 1, pp. 27-42.
  • Nagy, R. A. & Obenberger, R. W. (2004). “Factors influencing individual investor behaviour”. Financial Analysts Journal, 2004, Vol. 50, No. 4, pp. 63-68.
  • Nunnally, J. C. (1976). “Psychometric Theory”, (2nd edition & 4th edition (1978))”, Published by McGraw-Hill, New York.
  • Pagan, A. & Schwert, G. W. (1990). “Alternative models for conditional stock volatilities”, Journal of Econometrics, 1990, Vol. 45, No. 1&2, pp. 267-290.
  • Pattanaik, S. & Chatterjee, B. (2000). “Stock returns and volatility in India: An empirical puzzle”, Reserve Bank of India Occasional Papers, 2000, Vol. 21, No. 1, pp. 37–60.
  • Rajagopalan P. & Gurusamy. (2015). “Behavioural biases and perception of retail investors in stock market - An empirical approach”, Indian Journal: Sumedha Journal of Management, 2015, Vol. 4, No. 1, pp. 113-140.
  • Raju, M. T. & Ghosh A. (2004). “Stock market volatility- an international comparison”. Securities and Exchange Board of India-Working, 2004, pp. 8-22.
  • Sen, R. & Mehrotra, P. (2016). “Modeling jumps and volatility of the Indian stock market using high-frequency data”, Journal of Quantitative Economics, 2016, Vol. 17, No. 1, pp. 137-150. DOI: https://doi.org/10.1007/s40953016-0028-5
  • Sultana S. T. (2010). “An empirical study of Indian individual investors behaviour”, Journal of Finance and Management, 2010, Vol. 2, No. 1, pp. 19-33.
  • Trivedi, J., & Birau, R. (2013). “Estimating Emerging stock market volatility using GARCH family models”, Indian Journal of Applied Research, 2013, Vol. 3, No. 9, pp. 152-167.
  • Warne, R. T. (2011). “Beyond multiple regression: Using commonality analysis to better understand R2 results”, Gifted Child Quarterly, No. 55, pp. 313-318. doi: 10.1177/0016986211422217

Abstract Views: 510

PDF Views: 1




  • A Study on the Impact of Stock Market Volatility in India with Reference to Equity Investors

Abstract Views: 510  |  PDF Views: 1

Authors

C. Vengatesan
Department of Commerce, Guru Nanak College (Autonomous), Velachery, Chennai – 600042, Tamil Nadu, India

Abstract


The securitized investment which provides safety as well as liquidity for the investors in the current scenario because of the fluctuations happening in the stock market. The time horizon for trading is comparatively higher than stock market investment avenues, hence able to earn a good return by taking the right decision at the right time by analyzing the market, hence it is found that most of the equity investor prefer to invest in securities even though high volatility in stock market. The equity investor believed that stock market volatility is favorable to invest in infrastructure and automobile sector. The volatility is very high in the automobile sector is ranked at first among the BSE listed security followed by Infrastructure and FMCG having the highest volatility. Further, it concludes that the stock market volatility is impacting positively as well as negatively in order to make an investment decision.

Keywords


Equity Investor, Impact, Investment and Decision, Liquidity, Stock Market, Volatility.

References





DOI: https://doi.org/10.15410/aijm%2F2019%2Fv8i1%2F140598