Volatility in stock market

sunandaC

New member
Volatility:

The ups and downs of the financial markets have given millions of investors’ sleepless nights. Wide price fluctuations are a daily occurrence on the stock markets, the world over.

The interesting thing is, it is not the information fed to the markets that drives these prices. What, then, causes these extreme movements? Have the stock markets become more erratic in the recent times due to the emergence of “New economy” stocks?

The paper analyzes the causes of this volatility in the context of Indian stock markets. It discusses two different schools of thought.

One, the fundamentalist Theory, which argues that volatility, is explained by market information. Whereas, the second claims that it is caused by “Irrational Exuberance” or “Speculation Bubble”.

The unpredictable behavior of the market gave it a tag – 'a volatile market.' The factors that affected the market in the past were good monsoon, Bharatiya Janatha Party's rise to power etc.

The result of a cricket match between India and Pakistan also affected the movements in Indian stock market.

Because of this volatile nature of the Indian stock market I have asked few questions to the investors who are regular investors of Indian stock market.

Base on their answers I will analyze their behavior or attitude towards investment. This primary data will help me to judge investment trend in equity in India.
 

rosemarry2

MP Guru
Volatility:

The ups and downs of the financial markets have given millions of investors’ sleepless nights. Wide price fluctuations are a daily occurrence on the stock markets, the world over.

The interesting thing is, it is not the information fed to the markets that drives these prices. What, then, causes these extreme movements? Have the stock markets become more erratic in the recent times due to the emergence of “New economy” stocks?

The paper analyzes the causes of this volatility in the context of Indian stock markets. It discusses two different schools of thought.

One, the fundamentalist Theory, which argues that volatility, is explained by market information. Whereas, the second claims that it is caused by “Irrational Exuberance” or “Speculation Bubble”.

The unpredictable behavior of the market gave it a tag – 'a volatile market.' The factors that affected the market in the past were good monsoon, Bharatiya Janatha Party's rise to power etc.

The result of a cricket match between India and Pakistan also affected the movements in Indian stock market.

Because of this volatile nature of the Indian stock market I have asked few questions to the investors who are regular investors of Indian stock market.

Base on their answers I will analyze their behavior or attitude towards investment. This primary data will help me to judge investment trend in equity in India.

hey there,

Here I am uploading Notes on Stock Market Volatility in India, so please download and check it.
 

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