Trends in Indian Stock Market: Scope for Designing Profitable Trading Rule?

Gagari Chakrabarti () and Chitrakalpa Sen ()
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Gagari Chakrabarti: Presidency University
Chitrakalpa Sen: Auro University

Chapter Chapter 2 in Momentum Trading on the Indian Stock Market, 2013, pp 5-53 from Springer

Abstract: Abstract This chapter explores the latent structure in the Indian stock market, along with its sectors, around the financial crisis. To understand the market structure, the study makes use of exploratory factor analysis. It also tracks the factor scores along with the cycles in the respective indexes to scrutinize the underlying market behavior. Apart from looking for the latent structure, the chapter seeks to explore the following issues: How the market has behaved over the period of study? What are the trends at sectoral level? Are they similar, or otherwise to the market trends? Are the trends independent of the selection of the stock market exchanges and whether, and how financial crisis could affect such trends? The rationale behind such analyses is to see whether there has been any discernible change in the market structure before and after the shock. A clear behavioral pattern would hint toward an inefficient market and possible scope for designing profitable portfolio mix.

Keywords: Indian stock market; Bombay stock exchange; National stock exchange; Stock market cycle; Structural break; Exploratory factor analysis (search for similar items in EconPapers)
Date: 2013
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Persistent link: https://EconPapers.repec.org/RePEc:spr:spbchp:978-81-322-1127-3_2

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DOI: 10.1007/978-81-322-1127-3_2

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