Efficient Market Hypothesis: An Evaluation of the Efficiency of Indian Capital Markets

Mehul Mehta

Abstract

Market efficiency refers to the accuracy and quickness with which prices reflect market related information. Decisions of investment by an investor in a market is influenced by many factors, one of the most important is the market efficiency. Research reveals that if a market is efficient, it is extremely difficult to make excessive returns. In an efficient market there exist next to none undervalued securities. With the first stock exchange started functioning in 1875 Indian stock markets have been lucrative for the traders from around the world. This paper attempts to analyse the efficiency of the Indian capital markets. Research from the literature and the interviews of the renowned investors have been used to reach a conclusion. Some tips in context of investment strategy have also been provided.

Keywords   Efficient Market Hypothesis, Indian Stock Markets, Efficiency Test, Investment Strategy

Journal   IOARP Journal of Business and Management
Volume   Volume 2
Issue   Issue 2, Decemeber 2017
Date Published   31 December 2017
Published in   IOARP Journal of Business and Management
Date Appeared in GDL   15 January 2018

Pages   18
Global Digital Library Number   GDL-IOARP-JBM02-004
Copyright © 2015-2024 IOARP

Journal Homepage on Global Digital Library

Download Paper

1236 Downloads