Artha Vijnana: Journal of The Gokhale Institute of Politics and Economics

Yarram Subba Reddy ¹

Affiliations
1 Institute for Financial Management and Rearch 30,Kothari Road, Nungambakkam, Madras - 600 034, IN

Abstract

The prevent study deals with the liquidity function of a securities market and attempts to empirically analyse the extent of liquidity, and the concentration of trading activity of securities traded on the Bombay stock Exchange (BSE) and the National Stock Erchange (NSE). The factor motivating market participants to undertake trade are described and the concepts of price depth, price resiliency and market breadth are elucidated, Empirical analysis reveals that the liquidity as measured by quantity traded, turnover and price depth measures is low both on the BSE and the NSE Furthe, analysis also points out the incidence of high concentration of trading activity in a few securities on both the exchanges.

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