Journal articles on the topic 'Market efficiency- India'
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Ranganathan, Thiagu, and Usha Ananthakumar. "Market efficiency in Indian soybean futures markets." International Journal of Emerging Markets 9, no. 4 (September 9, 2014): 520–34. http://dx.doi.org/10.1108/ijoem-12-2011-0106.
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Purpose – The National commodity exchanges were established in India in the year 2003-2004 to perform the functions of price discovery and price risk management in the economy. The derivatives market can perform these functions properly only if they are efficient and unbiased. So, there is a need to properly evaluate these aspects of the Indian commodity derivatives market. The purpose of this paper is to test the market efficiency and unbiasedness of the Indian soybean futures markets. Design/methodology/approach – The paper uses cointegration and a QARCH-M-ECM-based framework to test the market efficiency and unbiasedness in the soybean futures contract traded in the National Commodity Derivatives Exchange (NCDEX). The cointegration test is used to test the long-run unbiasedness and market efficiency of the contract, while the QARCH-M-ECM model is used to test the short-run market efficiency and unbiasedness of the contract by allowing for a time-varying risk premium. The price data is also tested for presence of structural breaks using a Zivot and Andrews unit root test. Findings – The soybean contract is unbiased in the long run, but there are short-run market inefficiencies and also a presence of a time-varying risk premium. Though the weak form of market efficiency is rejected in the short run, the semi-strong market efficiency is not rejected based on the forecasts. Originality/value – This is the first paper to consider time-varying risk premium while performing the tests of market efficiency and unbiasedness on Indian commodity markets.
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Dixit, Alok, Surendra S. Yadav, and P. K. Jain. "Testing Lower Boundary Conditions for Index Options Using Futures Prices: Evidences from the Indian Options Market." Vikalpa: The Journal for Decision Makers 36, no. 1 (January 2011): 15–32. http://dx.doi.org/10.1177/0256090920110102.
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Options are the contracts which serve as a tool for risk hedging, price discovery, and better allocation of capital. The efficiency of an options market, i.e., the correctness of option prices denotes that it is working well at its well-identified functions (Ackert and Tian, 2000). In view of this, the efficiency of options market has been of equal interest to the academics as well as practitioners and a number of studies on efficiency of options market have been carried out across the globe in different options markets. The present paper attempts to assess the pricing efficiency of the S&P CNX Nifty index options in India by testing the Lower Boundary Conditions (LBCs) using futures prices instead of spot values. The methodology adopted essentially tests a joint market efficiency hypothesis of index options and index futures. This has been done in view of the fact that the use of futures markets helps in doing away with the short-selling constraint as futures can easily be shorted. And, it becomes a natural choice for analysis as the short-selling has been banned in the Indian securities market during the period under reference. Moreover, the use of futures markets, to a marked extent, helps in ensuring the exploitability of arbitrage opportunities when underlying asset is an index. The study covers a period of six years from June 4, 2001 (starting date for index options in India) to June 30, 2007. The major findings of the study are: The put options market is more efficient than the call options market, given the existing market microstructure in India during the period under reference. Another equally important finding is that the put options market showed an improvement in the pricing efficiency over the years whereas the call options market demonstrated a counterintuitive and adverse development. However, the profit potential offered by highly traded opportunities both in the cases of call and put options seems to be unexploitable in the presence of transaction costs. Moreover, the dearth of liquidity in the case of otherwise exploitable opportunities which carry higher profit potentials has been the main inhibiting factor to arbitrageurs. Therefore, in short, it is reasonable to conclude that majority of violations in call as well as put options could not be exploited on account of the existing market-microstructure in India during the period under reference (especially short-selling constraint that caused underpricing in futures to persist) and the dearth of liquidity in the options market. In other words, the revealed state of options pricing can be designated to the short-selling constraints and dearth of liquidity.
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Dubey, Tanuja. "STUDY OF WEAK FORM OF MARKET EFFICIENCY IN INDIA." International Journal of Advanced Research 11, no. 07 (July 31, 2023): 1171–78. http://dx.doi.org/10.21474/ijar01/17331.
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A securitys current market price already accounts for all of its prior trading volumes and prices, according to Indias lax form of market efficiency. An investor cannot generate spectacular returns by only relying on the analysis of previous price movements because any relevant information about the security would already be reflected into its present price. The accuracy and promptness with which prices reflect information about the market is known as market efficiency. All the information from prior prices and traded volume is included in the weak version of the markets current prices. Furthermore, future prices cannot be predicted by looking at past prices. Everyone has access to past prices, even though some people can obtain them more easily than others. Liquidity traders may sell their stocks, generating price volatility, without considering the shares fundamental value. The market price reflects the intrinsic value as a result of the buying and selling of information traders. The filter rule, runs test, and serial correlation are used to assess market efficiency. Run tests have been used in this research to identify market efficiency. Information on stock prices for the selected companies was gathered from the National Stock Exchange (NSE).
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Inoue, Takeshi, and Shigeyuki Hamori. "Market efficiency of commodity futures in India." Applied Economics Letters 21, no. 8 (February 3, 2014): 522–27. http://dx.doi.org/10.1080/13504851.2013.872751.
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Bhat, Rajani B., and Dr Suresh V N. "Price Volatility and Market Efficiency of Futures Market in India." IOSR Journal of Business and Management 16, no. 3 (2014): 11–18. http://dx.doi.org/10.9790/487x-16351118.
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Kharbanda, Varuna, and Archana Singh. "Lead-lag relationship between futures and spot FX market in India." International Journal of Managerial Finance 13, no. 5 (October 9, 2017): 560–77. http://dx.doi.org/10.1108/ijmf-01-2017-0001.
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Purpose The purpose of this paper is to study the lead-lag relationship between the futures and spot foreign exchange (FX) market in India to understand the price discovery mechanism and the relationship between these two markets. Design/methodology/approach The estimation of lead-lag relationship is realized in three steps. First unit root and stationarity tests (Augmented Dickey-Fuller, Phillips-Perron, and Kwiatkowski-Phillips-Schmidt-Shin) are applied to check the stationarity of the data. Second, cointegration tests (Engle and Granger’s residual based approach and Johansen’s cointegration test) are applied to determine long run relationship between the markets. Third, error correction estimation is carried out by applying Vector Error Correction Model (VECM) to determine the leading market. Findings The study finds that there is a long run relationship between the futures and spot market where the futures market has emerged as the leading market for the four currencies studied in the paper. Originality/value Majorly, the studies on Indian FX market limit themselves to identifying the efficiency of the market and the studies which talk about the lead-lag relationship focus on the Indian stock market. This paper enhances the existing literature on Indian FX market by exploring the less explored subject of the lead-lag relationship between futures and spot FX market in India.
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Dhivya, R., M. Prahadeeswaran, R. Parimalaragan, C. Thangamani, and S. Kavitha. "Commodity Future Trading and Cointegration of Turmeric Markets in India." Asian Journal of Agricultural Extension, Economics & Sociology 41, no. 9 (June 27, 2023): 190–99. http://dx.doi.org/10.9734/ajaees/2023/v41i92031.
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The government has reduced its direct market intervention in order to promote private sector engagement based on market forces, Farmers in an agriculture-dominated economy like India suffer not only yield risk but also pricing risk. As a result, agricultural products are now more vulnerable to market risks related to pricing and other factors. The futures market has to decide the prices of a commodity on the basis of demand and supply. It is important to know about the bi-directional and unidirectional relationship between different market’s the prices and future and Spot markets in India, price discovery process and price forecasting in Indian agricultural commodities. Knowing about different market’s price Integration will help us to know the prevailing prices in various markets and also the impact of one market’s price on another. It will help the farmers to know the different pricing statuses in different markets. The study analyses the efficiency of commodity futures of turmeric traded in NCDEX for 2016-2022 and the cointegration of theNizamabad, Erode, Sangli and Cuddapah Markets of India. In agriculture, commodity futures and derivatives are essential to the process of managing price risk.
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Dicle, Mehmet F., Aydin Beyhan, and Lee J. Yao. "Market efficiency and international diversification: Evidence from India." International Review of Economics & Finance 19, no. 2 (April 2010): 313–39. http://dx.doi.org/10.1016/j.iref.2009.09.003.
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Datta, Radhika Prosad, and Ranajoy Bhattacharyya. "Has the efficiency of foreign exchange markets in India evolved over time?" International Journal of Emerging Markets 13, no. 4 (September 17, 2018): 676–88. http://dx.doi.org/10.1108/ijoem-05-2017-0161.
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Purpose The purpose of this paper is to determine whether foreign exchange markets in India have become more efficient over time. There were two major developments in India’s foreign exchange market since the 1980s: first, a shift in foreign exchange management regime from a basket peg to a free float; and second, a rapid phase of economic liberalization since the mid-1990s. The paper attempts to find out whether the market efficiency of foreign exchange markets is affected by these developments. The paper mainly uses the well-known Hurst exponent calculated through corrected empirical R over S analysis to determine whether the exchange rates possess long memory. The robustness of the method is tested by calculating the Hurst exponent through two other prevalent methods in the literature. Design/methodology/approach The authors apply the corrected empirical Hurst exponent which employs the Anis Lloyd correction with the modification suggested by Weron. The sensitivity of the results is then tested by replicating the calculations using the detrended fluctuation analysis and Robinson’s method. Findings All the methods show that: first, there is no significant change in the overall efficiency of the foreign exchange market vis a vis the US$ for the time period from 1980 to 2017. Second, neither regime shifts nor calculations over sub-time periods is able to identify significant change in the efficiency level of the market for the US$ exchange rate. Third, efficiency of different exchange rate markets are different over the time period 1999–2017. The US$ market has unequivocally more long run memory compared to the GBP, Yen and EURO markets. Fourth, the results are robust to the method used for calculations. Originality/value Does the efficiency of asset markets evolve over time? This paper attempts to answer this question. In the process, the paper studies the effect of regime shifts and progressive globalization on the ability of the market to internalize information.
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Srivastava, Sandeep, Surendra S. Yadav, and P. K. Jain. "Significance of Non-Price Variables in Price Discovery: An Empirical Study of Stock Option Market in India." Vikalpa: The Journal for Decision Makers 33, no. 2 (April 2008): 15–24. http://dx.doi.org/10.1177/0256090920080202.
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The efficiency of the financial markets is important as it ensures increased productive efficiency and economic growth through better capital allocation. Price discovery is the central aspect of financial markets. The relatively efficient price signals also facilitate the participation of uninformed investors to make suitable portfolio choices. Derivative instruments like option contracts enhance informational efficiency of the underlying's market through better price discovery as these securities are expected to increase the flow of information in the market. Besides, they facilitate hedging of risk. In India, exchange-trade derivates are of recent origin in the stock market. This study investigates the significance of net open interest and trading volume in stock option and stock index option market to predict the underlying stock prices⁄index level. In the study, only 15 stock option contracts (having maturity of one-month) and Nifty options for the entire period, i.e., November 10, 2001 to November 2, 2004, have been analysed. The analysis could not be carried out for all the stocks in option segment because of the fact that the options were not traded or the trading range and volumes were too thin to justify any analysis. The major findings of the study are as follows: Net open interest of stock option is one of the significant variables in the determination of the future spot price of the underlying stock. Open interest-based predictors are statistically more significant than the volume-based predictors in the Indian context too as is the case for the US market. The trading behaviour of Indian investors is found to be different from their counterparts in the developed world. This difference can be attributed to: the nascent state of derivatives market in India extremely limited participation of institutional investors in the Indian stock derivative market because of regulatory restrictions; as such investors are allowed to use derivative securities mainly for hedging and arbitrage purposes only. The findings would definitely help the regulatory bodies in policy-making and further strengthening the efforts to promote the derivative market in India. There are many areas which are still unexplored and can be addressed by the future studies by using the intraday data and a larger sample for the stock options.
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Reddy, Y. V., and Pinkesh Dhabolkar. "Pricing Efficiency of Exchange Traded Funds in India." Organizations and Markets in Emerging Economies 11, no. 1 (May 29, 2020): 244–68. http://dx.doi.org/10.15388/omee.2020.11.33.
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Exchange traded funds (ETFs) have two prices, the market price and the net asset value (NAV) price. ETFs NAV price gets determined by the net value of the constituent assets, whereas the market price of ETFs depends upon the number of units bought or sold on the stock exchange during trading hours. As per the law of one price, the NAV and market price of the ETF should be the same. However, due to demand and supply forces, the market price may divert from its NAV. This price difference may have significant repercussions to investors, as it represents a cost if they buy overvalued ETF shares or sell undervalued ETF shares. Pricing efficiency is the speed at which the market makers correct the deviations between ETFs NAV and market price. The present study attempts to investigate the pricing efficiency of Indian equity ETFs employing an autoregression model over its price deviation, and also attempts to understand the lead-lag relationship between the price and NAV using the vector error correction model (VECM).
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Dayanandan, Ajit, and Jaspreet Kaur Sra. "Accrual management and expected stock returns in India." Journal of Accounting in Emerging Economies 8, no. 4 (November 5, 2018): 426–41. http://dx.doi.org/10.1108/jaee-08-2016-0073.
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Purpose The purpose of this paper is to examine whether the stock market in India is efficient in the semi-strong form. Design/methodology/approach The study uses financial and stock market data of 1,135 listed Indian companies (non-financial) during 2003–2011 collected from Capital IQ to estimate discretionary accruals (DA) using modified Jones model (1995). The study also examines using the widely used Mishkin (1983) test to whether equity market prices accruals in India. The study is conducted for profit/loss-making firms separately as well as for a hedge portfolio of firms based on the lowest to highest accruals. Findings The empirical study of DA of 1,135 listed Indian companies (non-financial) during 2003–2011 shows that the estimated average DA of the corporate sector in India comes to 1 percent of the total assets of these firms. An empirical analysis whether equity market prices DA in India finds no evidence of investors/market pricing DA. Empirical evidence also finds that the results are invariant for profit/loss-making firms as well as portfolio of firms based on the lowest to highest accruals in the Indian context. The empirical evidence shows that the Indian equity market is inefficient with regard to the incorporation of accruals in expected returns of stocks. Research limitations/implications This study builds on the previous literature on accrual pricing in the context of the USA and developed markets. The study extends the empirics to the one of the largest emerging market economy – India. This issue is important not only to investors, but also to policy makers and researchers because the mispricing of accruals could potentially lead to misallocation of capital. The study has implications for stock/firm valuations and cost of equity/capital. Originality/value This is the first study for the pricing of accruals and test of semi-strong efficiency of the Indian stock market.
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Sehgal, Sanjay, and Mala Dutt. "Domestic and International Information Linkages for the US Dollar/Indian Rupee Contracts: An Empirical Study." Management and Labour Studies 43, no. 4 (September 19, 2018): 205–33. http://dx.doi.org/10.1177/0258042x18791625.
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This study examines price discovery and volatility linkages between USD/INR spot and futures contracts in India and between USD/INR futures contracts on National Stock Exchange of India Limited (NSE), India and on three international exchanges, namely Singapore Exchange (SGX), Dubai Gold and Commodity Exchange (DGCX) and Chicago Mercantile Exchange (CME), from 29 August 2008 to 30 March 2015. Findings show that, at domestic level, the futures dominate spot in the Indian currency market; these findings are stronger than those in an earlier study, indicating improved pricing as well as hedging efficiency in the Indian currency market. At international level, NSE is dominated by both CME and DGCX in price discovery and in short-term volatility spillovers, while NSE dominates both exchanges in long-term volatility spillovers. Further, NSE dominates SGX in the international information process. The dominance of CME and DGCX over NSE may be on account of their several advantages such as longer trading hours, operations being open even after NSE has shut business, much lower trading costs as well as lower regulatory restrictions. The study provides several significant policy suggestions for improving efficiency of the Indian currency market and is also relevant for foreign portfolio investors (FPIs), domestic investors, researchers and academicians. It contributes to literature on information transmission relating to currency markets in emerging economies.
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Srinivasan, N. P., and M. S. Narasimhan. "Testing Stock Market Efficiency Using Risk-Return Parity Rule." Vikalpa: The Journal for Decision Makers 13, no. 2 (April 1988): 61–66. http://dx.doi.org/10.1177/0256090919880207.
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Although the concepts of efficiency have been extensively researched, an efficient stock market has remained elusive. The subject is of particular concern in India now because of the increasing dependence on the capital market for financing industrial growth. S K Barua and V Raghunathan presented two articles in Vikalpa (July-September 1986 and July-September 1987) arguing that the Indian capital market was inefficient. Using Reliance share prices, they tried to demonstrate that schemes yielding returns unrelated to risk existed. Srinivasan and Narasimhan in this article question the methodology used by Barua and Raghunathan and elaborate on the concepts of risk-return parity and efficiency, drawing a distinction between information efficiency and market efficiency.
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Rico Nur Ilham, Intan Eliana Putri, Fitri Randini, and Naila Salsabila Kusayuningrum. "INTERNATIONAL OPERATIONS MANAGEMENT IN INDIA." International Journal of Social Science, Educational, Economics, Agriculture Research and Technology (IJSET) 2, no. 7 (June 30, 2023): 649–54. http://dx.doi.org/10.54443/ijset.v2i7.231.
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International Operations Management in India is becoming an increasingly important aspect in today's global business era. India, as one of the largest economies in the world, offers significant business opportunities for international companies. However, managing business operations in India also presents various challenges that need to be overcome. In facing this challenge, companies must adopt an effective strategy. The strategy includes local customization, deep understanding of the Indian market, development of local partnerships and the use of advanced information technology. In addition, it is also important to build good relations with the government, business partners and the local community. Through implementing the right strategy, companies can optimize their business operations in India. This includes efficiency in the supply chain, product and service quality improvement, product innovation relevant to the Indian market, and adaptation to consumer needs and local preferences. Management of international operations in India is a complex challenge but also offers great opportunities for companies. In dealing with these problems and optimizing the potential of the Indian market, companies need to adopt strategies that are adaptive, innovative and sustainable. Thus, companies can successfully manage their international business operations in India and gain a competitive advantage in this dynamic market. Management of international operations in India is a complex challenge but also offers great opportunities for companies. In dealing with these problems and optimizing the potential of the Indian market, companies need to adopt strategies that are adaptive, innovative and sustainable. Thus, companies can successfully manage their international business operations in India and gain a competitive advantage in this dynamic market. Management of international operations in India is a complex challenge but also offers great opportunities for companies. In dealing with these problems and optimizing the potential of the Indian market, companies need to adopt strategies that are adaptive, innovative and sustainable. Thus, companies can successfully manage their international business operations in India and gain a competitive advantage in this dynamic market.
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Gupta, Rangan, and Vasilios Plakandaras. "Efficiency in BRICS Currency Markets Using Long-Spans of Data: Evidence from Model-Free Tests of Directional Predictability." Journal of Economics and Behavioral Studies 11, no. 1(J) (March 10, 2019): 152–65. http://dx.doi.org/10.22610/jebs.v11i1(j).2756.
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We analyze the directional predictability in foreign exchange markets of Brazil, Russia, India, China and South Africa (BRICS) using the quantilogram, based on long-spans of monthly historical data, at times covering over a century. We find that the efficient market hypothesis (EMH) holds at the extreme phases of the currency markets (and around the median for India and South Africa). Since predictability holds at certain parts of the unconditional distribution of exchange rate returns, we find support for the Adaptive Market Hypothesis (AMH). AMH, based on the idea of bounded rationality, suggests that currency return predictability will be intermittent, due to changing market conditions and institutional factors.
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Sabarinathan, G. "SEBI's Regulation of the Indian Securities Market: A Critical Review of the Major Developments." Vikalpa: The Journal for Decision Makers 35, no. 4 (October 2010): 13–26. http://dx.doi.org/10.1177/0256090920100402.
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Since the empowerment of the Securities and Exchange Board of India (SEBI) through an Act of Parliament in 1992, SEBI has come up with a number of initiatives aimed at regulating and developing the Indian securities market and improving its safety and efficiency. These initiatives have made an impact on nearly every aspect of the market. Some of those initiatives have transformed the market fundamentally. Particularly noteworthy is the growth in the following: Market capitalization Number of listed firms Trading volumes and turnover both in the spot and futures markets. There is a growing network of financial intermediaries that operate in a highly competitive environment while being governed by a tight set of norms. India has one of the most sophisticated new equity issuance markets. Disclosure requirements and the accounting policies followed by listed companies for producing financial information are comparable to the best regimes in the world. The Indian securities market is among the safest and the most efficient trading destinations internationally. The Indian corporate governance code is compared to the Sarbanes Oxley Act of the USA. India has one of the fastest growing and well-developed asset management businesses in the world, with state-owned as well as private sector players. That said, the Indian market is often hostage to some scam or the other from time to time. Effective enforcement of compliance is cited as one of the reasons for these unsavoury episodes. The role that SEBI's initiatives have played in bringing about this transformation of the market has not been researched comprehensively so far. Literature that has analysed the efficiency and the design of the Indian securities market has examined the role of certain specific regulatory provisions on the functioning of the securities market. So also the various annual reports of SEBI discuss the regulatory and other institutional developments that took place during the year under review. However, no attempt seems to have been made to take stock of all the various initiatives of SEBI so far and assess its impact on the activity in the securities market. This paper identifies some of the major interventions of SEBI relating to each of these aspects of the market and critically examines the economic consequences of the same. Such a stock-taking will enable a well-rounded and objective review of SEBI's performance. It is also likely to suggest interesting areas for further research.
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Pillai, Gayathri P., and Arjun Pillai. "Efficient Market Hypothesis during the Time of COVID." International Journal of Recent Technology and Engineering 10, no. 1 (May 30, 2021): 21–29. http://dx.doi.org/10.35940/ijrte.a5667.0510121.
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This paper examines the efficiency of the Indian Stock Markets (NSE) during the time of COVID. It demonstrates the impact on the market on the announcement of two major events that is the declaration of COVID as a Public Health Emergency Of International Concern (PHEIC) on 30th January 2019 and the day when Prime Minister Narendera Modi declared first lockdown in India, 24th March 2019. The study uses the Event Study methodology to determine the efficiency of the markets. The study found that the markets were in fact inefficient during the period under study and that there were numerous opportunities to make abnormal profits. The study also conducted a sector wise comparison to analyze the impact of the above mentioned events and found a major difference in the way each sector was affected by the news, indicating different levels of efficiency in the semi strong form of market. The results of this research helps one to understand investor behavior and biases and the different opportunities one could make use of, in order to make abnormal profits.
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Kharbanda, Varuna, and Archana Singh. "Futures market efficiency and effectiveness of hedge in Indian currency market." International Journal of Emerging Markets 13, no. 6 (November 29, 2018): 2001–27. http://dx.doi.org/10.1108/ijoem-08-2017-0320.
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Purpose Corporate treasurers manage the currency risk of their organization by hedging through futures contracts. The purpose of this paper is to evaluate the effectiveness of hedging by US currency futures contracts by taking into account the efficiency of the currency market. Design/methodology/approach The static models for calculating hedge ratio are as popular as dynamic models. But the main disadvantage with the static models is that they do not consider important properties of time series like autocorrelation and heteroskedasticity of the residuals and also ignore the cointegration of the market variables which indicate short-run market disequilibrium. The present study, therefore, measures the hedging effectiveness in the US currency futures market using two dynamic models – constant conditional correlation multivariate generalized ARCH (CCC-MGARCH) and dynamic conditional correlation multivariate GARCH (DCC-MGARCH). Findings The study finds that both the dynamic models used in the study provide similar results. The relative comparison of CCC-MGARCH and DCC-MGARCH models shows that CCC-MGARCH provides better hedging effectiveness result, and thus, should be preferred over the other model. Practical implications The findings of the study are important for the company treasurers since the new updated Indian accounting standards (Ind-AS), applicable from the financial year 2016–2017, make it mandatory for the companies to evaluate the effectiveness of hedges. These standards do not specify a quantitative method of evaluation but provide the flexibility to the companies in choosing an appropriate method which justifies their risk management objective. These results are also useful for the policy makers as they can specify and list the appropriate methods for evaluating the hedge effectiveness in the currency market. Originality/value Majorly, the studies on Indian financial market limit themselves to either examining the efficiency of that market or to evaluate the effectiveness of the hedges undertaken. Moreover, most of such works focus on the stock market or the commodity market in India. This is one of the first studies which bring together the concepts of efficiency of the market and effectiveness of the hedges in the Indian currency futures market.
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Samal, Gouri Prava. "Price Discovery Efficiency of Cotton Futures Market in India." Agricultural Economics Research Review 30, no. 2 (2017): 235. http://dx.doi.org/10.5958/0974-0279.2017.00045.3.
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Shaikh, Jahanara, R. S. Shrivastava, Dharmnath Jha, and Amit Ranjan Pandey. "Market efficiency as indicators of fish market along the middle stretch of River Ganga, India." Aquatic Ecosystem Health & Management 25, no. 3 (July 1, 2022): 55–62. http://dx.doi.org/10.14321/aehm.025.03.55.
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Abstract The fish market in the state of Uttar Pradesh, India, is not formally organised. Rather, it permeates from a direct fisher market to a wholesale market. Fish caught from the River Ganga are distributed through many intermediaries and are transported to farther regions like Guwahati and Kolkata in the east. The objective of the study is to assess market efficiency and, with this assessment, make recommendations that can be used to improve the livelihoods of the fishers. We accomplish this by investigating market efficiency indicators including production capacity of the area, Percent Share of Fisher in the Consumer's Money, and price stability of fish markets in different districts (including Bulandshahr, Farrukhabad, Kanpur, Fatehpur, Prayagraj and Varanasi). These are the districts that are located on the bank of the River Ganga in the state of Uttar Pradesh. The study consists of interviews with fishers, wholesalers, vendors, auctioneers, and consumers. The study examines 9 wholesalers, 9 retail markets and 1 direct fisher market. The demographic variables of fish sellers viz. age, education, caste, family size, experience and occupation are also studied. Descriptive statistics and cross-tabulation are used for nominal variables to measure and test conceptions and misconceptions of the fish market. Fish selling is carried out through fish market channels including 220 middlemen, 249 retailers, 48 wholesalers, and 72 auctioneers. Together, these individuals make up the channel structure, channel strategy, and channel performance. The high number of middlemen demonstrates that the market structure is inefficient. Higher Percent Share of Fisher in the Consumer's Money was observed for fishes like Labeo rohita (65.8%), Cirrhinus Mrigala (64%), and Labeo Calbasu (64.3%). The average Percent Share of Fisher in the Consumer's Money is 54% and shows the fishers earn little more than half of the revenue generated. The study shows that high-value fish have less price stability and low-value fish have high price stability across the fish market channel, respectively. Our investigation recommends reducing the number of market channels with the application of modern infrastructure in order to increase the quality of products received by the consumer and to increase fisher share in consumer's money.
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Qadri, Syed Usman, Naveed Iqbal, and Syeda Shamaila Zareen. "Stock Return Predictability and Market Efficiency in Pakistan; A Role of Asian Growing Economies of India and Malaysia." ANNALS OF SOCIAL SCIENCES AND PERSPECTIVE 2, no. 2 (November 24, 2021): 257–67. http://dx.doi.org/10.52700/assap.v2i2.95.
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The purpose of this study is to determine the predictability of the Pakistani stock market's one-day forward returns by utilizing lagged daily returns for Pakistan, India, and Malaysia from 2006 to 2016. The findings indicate that lagged Pakistani market returns significantly predict Pakistani one-day ahead market returns. However, the other two growing stock markets, India and Malaysia, show no association with one-day ahead market returns. Mostly, stock market behavior in the pre-2008 and post-2008 eras was the same, although industry return behaviour was different due to the economic crisis of 2008. However, the Pakistani stock market one-day ahead returns predict the own Pakistani lag returns due to an inefficient market and prices do not follow a random walk. As a result, investors and financial analysts can foresee and generate anomalous returns by using previous data and information.
Key words: Stock Market Returns Predictability, Stock Market crash, Market efficiency
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Goswami, Rishabh, Farah Hussain, and Manish Kumar. "Banking Efficiency Determinants in India: A Two-stage Analysis." Margin: The Journal of Applied Economic Research 13, no. 4 (November 2019): 361–80. http://dx.doi.org/10.1177/0301574219868373.
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This study aims at measuring the technical efficiency of banks in India and examining its determinants. Efficiency is said to be achieved if a bank is able to maximise its output subject to limited inputs. To obtain technical efficiency score, input-oriented Malmquist Data Envelopment Analysis is applied on two outputs and three input variables, based on a VRS (variable returns to scale) assumption. Three foreign banks—namely, A B Bank Ltd, Bank of Ceylon, and Citibank N A—and two Indian banks—namely, HDFC Bank and State Bank of India—are found to be most efficient during the study period. The efficiency scores when subsequently used as the dependent variable along with independent variables—bank size, capitalisation, liquidity risk, returns on assets, interest rate, credit risk, market concentration and gross domestic product (GDP)—in a panel regression analysis found the fixed effect model to be more appropriate in explaining the determinants. The results reveal that liquidity risk, returns on assets, credit risk, market concentration and GDP have a significant effect on the technical efficiency, while banks size, interest rate and level of capitalisation are found to be insignificant variables. JEL Classification: G21, C13, C60
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Ahmad, Noryati. "Examining Market Efficiency and Integration of the Islamic Stock Indices." Journal of Emerging Economies and Islamic Research 4, no. 4 (December 31, 2016): 12. http://dx.doi.org/10.24191/jeeir.v4i4.9100.
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The question of whether the stock market is efficient has been an ongoing debate among researchers. Generally, empirical evidence indicates that most conventional stock indices for developed countries are weak form efficient while inconclusive results are discovered for developing countries. With the growing importance of the Islamic capital markets that run parallel to the conventional stock markets, similar question arises as to whether these new Islamic capital markets are also efficient. Hence this paper aims to examine the weak form efficiency of the Islamic stock indices. Autocorrelation Function (ACF) test and Variance Ratio (VR) test are used to test the market efficiency of the Islamic stock indices from China, India, South Africa, Malaysia, Dubai, Qatar and Japan. The study uses daily data covering the year 2008 until 2012. In addition, this paper attempts to unveil the dynamic causal relationships among the Islamic capital markets. Bivariate Granger Causality test is employed to achieve the objectives. Interestingly only the Islamic stock indices for Malaysia and India are weak form efficient while the results of the Islamic stock indices for Qatar and Kuwait are not. The results of the other Islamic stock indices studied are inconclusive. Johansen multivariate cointegration tests reveal no long-term relationship among the Islamic stock indices. On the other hand, bivariate Granger Causality tests report short run co-movements between Islamic stock indices of Muslim countries and non-Muslim countries, an indication of growing interest of the Islamic financial markets among investors.
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Singh, Narinder Pal, and Archana Singh. "Empirical Investigation on Food Inflation and Efficiency Issues in Indian Agri-futures Market." Emerging Economy Studies 3, no. 2 (November 2017): 156–65. http://dx.doi.org/10.1177/2394901517730729.
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In early 2007, the Government of India (GoI) banned futures trading on some essential agro-commodities such as wheat, rice, and two varieties of lentils due to rising food inflation. However, futures trading in agri-commodities such as chana (chickpea), soy oil, rubber, and potato were temporarily suspended. Professor Abhijit Sen’s committee, constituted to study the relationship between futures trading and agricultural commodities inflation, did not find sufficient evidence of inflationary impact of futures trading in India due to too short period of commodity futures trading. Also, an efficient futures market is required for the producers, traders, and consumers to hedge their price risk. Thus, in this study, we analyze the market efficiency of agricultural futures market and the effect of futures trading on inflation with special reference to chana (chickpea) market in India. This study is for a time frame of 10 years from 2005–2014. The data on closing prices of chana in futures and spot markets and futures trading volume has been collected from National Commodity and Derivatives Exchange, and chana wholesale price index (WPI) monthly data from Office of the Economic Adviser, GoI. The collected data is analyzed for efficiency using Johansen cointegration approach and vector error correction (VEC) restrictions and inflationary effect using Toda Yamamoto (TY) version of Granger causality test. From the results, we find that the spot and futures prices for chana are cointegrated and unbiased, that is, the chana (chickpea) futures market is efficient. But, the futures trading of chana has inflationary impact, that is, futures trading volume of chana affects chana WPI. This research has got direct implications for government and market participants. India is the largest consumer of chana (chickpea)—the third most important pulse crop produced in the world. Thus, the inflationary impact of chana futures trading is a matter of concern for GoI.
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Singh, Amit Kumar, and Neha Nainwal. "Estimating the Long-Run Determinant of the Efficiency of the Stock Market in India." Asia-Pacific Journal of Management Research and Innovation 13, no. 1-2 (March 2017): 70–80. http://dx.doi.org/10.1177/2319510x18767714.
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One of the prominent views is that development in a stock market has a positive impact on economic growth. The role of the stock market becomes important as it leads to capital formation in an economy which is used for producing goods and services in it, leading to growth in the real sector. However, it is only possible if the stock market is efficient enough to mobilise saving from a deficit spender unit to a surplus spender unit. Therefore, our study proposes to estimate the determinant of stock efficiency with the help of a fully modified ordinary least-squares model. The result of the analysis indicates that although both the risk-free interest rate and market capitalisation have a positive and significant impact on stock return, the impact of market capitalisation is larger. In terms of dynamic analysis, the error correction model shows that the speed of adjustment is around 50 per cent or time taken for re-establishing the long-run equilibrium is about two years. As market capitalisation is one of the important determinants of the efficiency of a stock market, the government should bring new reforms in the capital and money markets so that new financial innovations can be introduced in the market. Simultaneously, the regulation should be made to provide higher protection to the investor which further helps them to increase their confidence in the market.
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Nath, Golak, and Manoel Pacheco. "Currency futures market in India: an empirical analysis of market efficiency and volatility." Macroeconomics and Finance in Emerging Market Economies 11, no. 1 (June 29, 2017): 47–84. http://dx.doi.org/10.1080/17520843.2017.1331929.
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Nguyen, Thanh Pham Thien, and Son Hong Nghiem. "Market concentration, diversification and bank performance in China and India." Managerial Finance 42, no. 10 (October 10, 2016): 980–98. http://dx.doi.org/10.1108/mf-12-2015-0327.
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Purpose The purpose of this paper is to examine the operational efficiency and effects of market concentration and diversification on the efficiency of Chinese and Indian banks in the 1997-2011 period. Design/methodology/approach This study employs the two-stage bootstrap procedure of Simar and Wilson (2007) to obtain valid inferences on the efficiency scores and the efficiency determinants. Findings Using data set for each country separately, the authors found that the bias-corrected cost efficiency displays an upward trend in Chinese and Indian banks. This trend is consistent with profit efficiency among Chinese banks, but the trend is unclear in Indian banks. Market concentration is negatively related to cost and profit efficiencies of Chinese banks. However, market concentration is positively associated with cost efficiency, but unrelated to profit efficiency of Indian banks. In Chinese banks, diversification of revenue, earning assets and non-lending earning assets are associated with increasing profit efficiency, but their effects to cost efficiency are not clear. In Indian banks, diversification of earning assets increases profit efficiency while there are cost efficiency losses from diversification of revenue and earning assets. Practical implications Bank regulators and supervisors in China should consider establishing policies to reduce market concentration and encourage diversification of revenue, earning assets and non-lending earning assets, while increasing concentration and diversification of earning assets should be encouraged in Indian banks. Originality/value To the best of the authors’ knowledge, this is the first study employing the double bootstrap procedure proposed by Simar and Wilson (2007) which can address the problem of the two-stage data envelopment analysis or SFA estimator in the efficiency literature on Chinese and Indian banks that efficiency scores obtained in the first stage are inter-dependent, and hence violating the basic assumption in regression analysis in the second stage.
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Kumar, Anil, Manoj Kumar Dash, and Rajendra Sahu. "Performance Efficiency Measurement of Airports." International Journal of Strategic Decision Sciences 9, no. 2 (April 2018): 19–37. http://dx.doi.org/10.4018/ijsds.2018040102.
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This article describes how to improve the overall efficiency and effectiveness of the aviation sector and also to source extra funding, the Government of India has paved the way for private investors through to a Public Private Partnership (PPP) model since the 1980s. This liberalization step in the Indian aviation market has minimized the institutional barriers which have hindered the freedom and flexibility of air transport operations among private investors. Now, competition within the aviation sector has become fiercer; the Airports Authority of India (AAI) and Public Private Partnership (PPP) in Indian airports are not only providing varied services, but also attracting consumers with new infrastructure and full modern facilities. The importance of this article is because after privatization, no studies have been conducted to examine the efficiency of Indian airports by using Data Envelopment Analysis (DEA). An output-oriented DEA model is employed to determine the efficiency score of airports by taking a sample of 15 airports, including airports run by PPP, for comparison. Output-oriented DEA calculates the efficiency by maximizing the outputs for a given level of inputs. Therefore, this article contributes to the existing literature on Indian airports. Based on available data, three variables - length of runways, terminal size and number of check-in counters, are used as inputs and two variables - passenger movement and aircraft movement, are used as outputs.
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Kumar Garg, Rakesh, and Dr Deepak Kumar Agarwal. "Impact of Human Resource Management Policies and Digitalization on the Public Sector Enterprises in India." Shanlax International Journal of Management 9, S1-Feb (February 25, 2022): 282–87. http://dx.doi.org/10.34293/management.v9is1.4869.
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Any organization’s success is determined by the quality of its human resources. Human resources, in the form of personnel, are the most vital and valuable assets that any firm has. In the changing and globalized environment, enterprises are supposed to give more thought to quality and human resources needs to become sustainable. Productivity and efficiency of the employees are two of the top factors influencing organization success. Digitalization has become necessary for the Indian public sector and markets in the present scenario. The Digital India initiatives have transformed Indian market into a digitally empowered knowledge economy. It is a scheme of the Indian Government to assimilate the various public sectors and the people of India. It seeks to provide Government services to the citizens of India in online format than paperwork. The aims of this study consist validation of a framework for assessing the associations among HRM policies and digitalization of the public sector enterprises in India.
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STUDER, ROMAN. "India and the Great Divergence: Assessing the Efficiency of Grain Markets in Eighteenth- and Nineteenth-Century India." Journal of Economic History 68, no. 2 (June 2008): 393–437. http://dx.doi.org/10.1017/s0022050708000351.
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By analyzing a newly compiled data base of grain prices, this article finds that prior to the nineteenth century the grain trade in India was essentially local, while more distant markets remained fragmented. It was only in the second half of the nineteenth century that these premodern structures were transformed, and a national grain market had emerged. In theGreat Divergencedebate, theCalifornia School'sclaim that early modern “Asia” reached a similar stage of economic development as early modern Europe is therefore rejected for India.
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Lekshmi, P. S. Swathi, R. Narayanakumar, and Shyam S. Salim. "Market Efficiency Indicators in Marine Fish Marketing in Goa, India." Journal of Agricultural Science 12, no. 7 (June 15, 2020): 112. http://dx.doi.org/10.5539/jas.v12n7p112.
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The Indian State of Goa has a coastal length of 104 Kms and the State contributes 1.85% to the marine fish production of the country. A study was conducted to assess the market efficiency indicators such as Gross Marketing Margin, Percentage Share of Fisherman in the Consumers Rupee (PSFCR) and the Coefficient of variation. The study revealed that high value fishes such as cobia, silver Whiting, seer fishes, prawns and milk shark recorded a comparatively higher price spread. Varieties which recorded higher PSFCR were speckled prawn (72.86%), cobia (70.31%), seerfish (69.98%), Brown shrimps or ginga prawns (69.43%), pony fish (67.58%) and milk shark (65.61%). At the point of first sales, high value fishes such as cobia, seerfishes, prawns and silver biddy had a co-efficient of variation of less than 10% indicating a higher price stability. High value fishes such as ribbon fishes, seerfishes, cobia, indian white prawn, barracudas, brown prawns, speckled prawns, kadal shrimps and half beaks were among the list of fishes which recorded a low co-efficient of variation of less than 10% at the point of last sales.
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Harish, S. N., and S. Sathyanarayana. "Forex Market Weak Form Efficiency and Seasonality : Evidence from India." Kuwait Chapter of Arabian Journal of Business and Management Review 6, no. 4 (December 2016): 21–36. http://dx.doi.org/10.12816/0036699.
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Verma, Piyush, Alka Verma, and Anupam Agnihotri. "India’s initiatives on Improving Energy Efficiency in Aluminium Industries." Asia Pacific Journal of Energy and Environment 2, no. 2 (December 31, 2015): 53–60. http://dx.doi.org/10.18034/apjee.v2i2.224.
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India is an important player in the aluminium, especially because of its abundant bauxite reserves and low-cost skilled manpower. The sector has a significant importance in the growth of Indian economy since the aluminium consumption follows GDP growth curve. Indian aluminium sector is observed as one of the energy intensive sectors with ample scope for improvements in energy efficiency as compared to world standards. The aluminium industries are upgrading themselves by adapting state-of-art technologies, which are more energy-efficient and sustainable in a highly competitive market. These initiatives are further accelerated and motivated by an innovative incentivization scheme (called Perform, Achieve and Trade) of Govt. of India. Currently, the first phase (2012-15) is under implementation, and an unexpected movement towards energy efficiency is envisaged as a result that will ultimately lead towards production of low carbon aluminium for the society.
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Pandey, Asheesh, Vandana Bhama, and Amiya Kumar Mohapatra. "Trading strategy using share buybacks: evidence from India." Investment Management and Financial Innovations 17, no. 2 (June 15, 2020): 169–82. http://dx.doi.org/10.21511/imfi.17(2).2020.14.
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The efficient market hypothesis states that in the efficient markets, participants cannot make extra-normal returns by exploiting any publicly available information. However, traders are constantly looking to exploit publicly available information to generate abnormal returns for themselves and their clients. One such event is share buyback announcement, which traders can utilize to create profitable trading strategies. The authors undertake the present study to examine if share buyback announcements provide profitable trading strategies to traders. Event study methodology has been adopted to analyze buyback announcements by Indian companies from January 2012 to December 2018. Forty-one (41) day window period comprising of 20 days pre-event, an announcement day, and 20 days post-event period is created to analyze the risk-adjusted average abnormal returns. The empirical findings suggest that there are negligible trading opportunities available for investors post announcements. However, significant risk-adjusted returns are found in the pre-event window, indicating that if investors can predict buyback announcements, they may earn extra-normal returns. The study confirms that Indian stock markets are in the semi-strong form of efficiency. The study also provides a profitable trading strategy for investors in the pre-event window. Finally, it also draws the regulators’ attention to see if insider trading could be the reason for abnormal returns in the pre-event window. The authors conclude the results by confirming that Indian markets are semi-strong in market efficiency and by indicating regulatory interventions to control insider trading. AcknowledgementThe infrastructural support provided by FORE School of Management, New Delhi in completing this paper is gratefully acknowledged.
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Shashi Gupta, Himanshu Choudhary, and D. R. Aggarwal. "Efficiency of Indian Commodity Market: A Survey of Brokers’ Perception." Journal of Technology Management for Growing Economies 7, no. 1 (April 26, 2016): 55–71. http://dx.doi.org/10.15415/jtmge.2016.71003.
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The present study documents the finding of a survey of brokers’ perception pertaining to the recently introduced commodity derivatives market in India. The survey results show the brokers’ assessment about trading/marketing activities and their perception of the benefits and concerns about commodity derivatives. It also throw some light on the perception of brokers about the efficiency of Indian commodity derivatives in performing the functions of price discovery, hedging effectiveness and volatility dynamics. The survey results show that high net worth individual are contributing significantly in the trade volume of commodity derivatives. Interestingly, retail investors are also emerged as the significant contributor in total turnover of brokers. Survey results exhibit that price discovery and hedging effectiveness functions are well performed by all the commodity futures except the energy commodities futures. Energy commodities, being the most volatile commodities, are perceived as having less hedging effectiveness as compared to others. Brokers are assenting on the high to moderate impact of open interest, volume and time to maturity on the volatility of the commodity futures derivatives.
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Padmanabhan, P. A. "Do Demerger Announcements Impact Shareholders Wealth? An Empirical Analysis Using Event Study." Vision: The Journal of Business Perspective 22, no. 1 (February 4, 2018): 22–31. http://dx.doi.org/10.1177/0972262917750233.
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Corporate restructuring has been on an increasing trend in India over the past two decades, and demergers are emerging as one of the important forms of corporate restructuring. While there is extensive literature on demergers abroad, there is limited literature on demergers in the Indian context. In this study, the impact of demerger announcements on shareholders’ wealth is analysed using event study. Demerger announcements made by 63 companies spread over 11 years from 2003 to 2014 are taken up for the study. Two different models, namely, mean-adjusted returns model and market model, are applied. Log returns are used in the study. The efficiency of the Indian stock market is also tested in the study. The results show positive abnormal returns during the event window under both mean-adjusted returns model and market model. The results also indicate that the Indian stock market exhibits semi-strong form efficiency.
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Ramakrishnan, K. "Long-term Post-merger Performance of Firms in India." Vikalpa: The Journal for Decision Makers 33, no. 2 (April 2008): 47–64. http://dx.doi.org/10.1177/0256090920080204.
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Mergers are important corporate strategy actions that, among other things, aid the firm in external growth and provide it competitive advantage. This area has spawned a vast amount of literature over the past half a century, especially in the developed economies of the world. India too has been seeing a growth in the number of mergers over the past one-and-a-half decades since economic liberalization and financial reforms were introduced in 1991. Studies on the post-merger long-term performance of firms in both the developed and the developing markets have not been able to come to a definite and convincing conclusion about whether mergers have helped or hindered firm performance. Our literature review shows that mergers do not appear to be resulting in favourable financial performance of firms in the long-term in the markets where they are a fairly recent phenomenon. The economic liberalization and reforms initiated in 1991 in India have served to trigger corporate restructuring through M&As. The removal of industrial licensing, lifting of monopoly provisions under the MRTP Act, easing of foreign investment, encouraging the import of raw materials, capital goods, and technology have increased the competition in Indian industry. Firms are free to fix their capacity, technology, location, etc., to enhance their efficiency. The amendment of the MRTPA has made it possible for group companies to consolidate through mergers eliminating duplication of resources and bringing down costs. M&A has now become a viable strategy for growth in India. Immediately after liberalization, Indian industry added capacity since it expected a rapidly expanding market due to the perceived latent demands of the vast middle class. But the lower income groups could not participate in the consumer goods market. The economy began to slow down from 1996. This squeezed the profit margins of local firms that now had excess capacities. Industry saw a spate of restructuring in the form of shedding non-core activities in favour of core competencies and expansion through M&As, in a bid for survival. According to market reformers, growth is the result of efficient utilization of resources on the supply side. In a free market economy, utilization becomes more efficient due to competition. It is thus hypothesized that -- Mergers in India have resulted in improved long-term post-merger firm operating performance through enhanced efficiency. Statistically analysed cash flow accounting measures were used to study whether firm performance improved in the long-term post-merger. This research, on a sample of 87 domestic mergers, validates the hypothesis: Efficiency appears to have improved post-merger lending synergistic benefits to the merged entities. Synergistic benefits appear to have accrued due to the transformation of the hitherto uncompetitive, fragmented nature of Indian firms before merger, into consolidated and operationally more viable business units. This improved operating cash flow return is on account of improvements in the post-merger operating margins of the firms, though not of the efficient utilization of the assets to generate higher sales.
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Thazhugal Govindan Nair, Saji. "Recession effect in pricing efficiency of rubber futures: the emerging market’s experience." Journal of Agribusiness in Developing and Emerging Economies 9, no. 5 (October 14, 2019): 503–19. http://dx.doi.org/10.1108/jadee-06-2018-0075.
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Purpose The purpose of this paper is to investigate the recession effects in market efficiency of natural rubber futures contracts traded in India. Design/methodology/approach The research draws inferences from Granger causality and Engle–Granger cointegration tests, which are administered separately on 14 year daily price data spanning into two distinct, non-overlapping time series of 2004–2008 and 2009–2017. Findings Analysis shows that rubber futures market is informationally efficient in price discovery. The results of cointegartion tests indicate that a long-term relationship does exist between futures and spot prices of the natural rubber in India. The recession effects in the market efficiency of rubber futures contracts are evident from the increase in optimal hedge ratios estimated with the cointegration methodology. Research limitations/implications The study pursues a simple cointegration methodology to assess the causal relations between spot and futures market prices in the Indian context. Future studies investigating the long-run causal relations, with error correction framework, between spot and future prices of rubber from other leading rubber producing countries can validate the findings more on this issue. Practical implications The research expects to pass on vital information inputs on the implications of future contracts to rubber traders for managing their portfolios. The study of this kind definitely will be a great help to farmers and exporters who are potentially interested in gaining access to a hedging vehicle. Originality/value The paper is unique in terms of understanding the effects of economic recession in information efficiency of futures market. Moreover, a limited number of studies have explored the functional utilities of rubber futures in emerging market context.
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R L, Manogna, and Aswini Kumar Mishra. "Price discovery and volatility spillover: an empirical evidence from spot and futures agricultural commodity markets in India." Journal of Agribusiness in Developing and Emerging Economies 10, no. 4 (May 23, 2020): 447–73. http://dx.doi.org/10.1108/jadee-10-2019-0175.
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PurposePrice discovery and spillover effect are prominent indicators in the commodity futures market to protect the interest of consumers, farmers and to hedge sharp price fluctuations. The purpose of this paper is to investigate empirically the price discovery and volatility spillover in Indian agriculture spot and futures commodity markets.Design/methodology/approachThis study uses Granger causality, vector error correction model (VECM) and exponential generalized autoregressive conditional heteroskedasticity (EGARCH) to examines the price discovery and spillover effects for nine most liquid agricultural commodities in spot and futures markets traded on National Commodity and Derivatives Exchange (NCDEX).FindingsThe VECM results show that price discovery exists in all the nine commodities with futures market leading the spot in case of six commodities, namely soybean seed, coriander, turmeric, castor seed, guar seed and chana. Whereas in case of three commodities (cotton seed, rape mustard seed and jeera), price discovery takes place in the spot market. The Granger causality tests indicate that futures markets have stronger ability to predict spot prices. Supporting these, the results from EGARCH volatility test reveal that there exist mutual spillover effects on futures and spot markets. Thus, it could be inferred that futures market is more efficient in price discovery of agricultural commodities in India.Research limitations/implicationsThese results can help the market participants to benefit by hedging out the uncertainty and the policymakers to design futures contracts to improve the efficiency of the agricultural commodity derivatives market.Practical implicationsThe findings provide fresh view on lead–lag relationship between future and spot prices using the latest data confirming that futures market indeed is dominant in price discovery.Originality/valueThere are very few studies that have explored the efficiency of the agricultural commodity spot and futures markets in India using both price discovery and volatility spillover in a detailed manner, especially at the individual agriculture commodity level.
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Vijay, Dr S. "A Study On Impact Of White Goods Towards consumers Preference." Journal of University of Shanghai for Science and Technology 23, no. 12 (December 18, 2021): 300–315. http://dx.doi.org/10.51201/jusst/21/121029.
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The market’s level of competition has risen as a result of the advent of the overseas white goods industry. With rising earnings, dual-income families, changing lifestyles, credit availability, greater consumer knowledge, and the introduction of new models by Indian and multinational companies, India’s consumer durable sector is riding the crest of the country’s economic boom. As the Durable market is growing rapidly, an understanding of the consumer behavior regarding the characteristic of consumers in influencing their buying behavior is crucial. Consumer requirements of Air-condition, Washing machine and Refrigerator are at present not limited to its basic function but also on other values like – efficiency, ease of use and comfort. The consumer durables industry is marked by the growth of multinational corporations (MNCs), exchange offers, discounts, and fierce competition. MNCs have a 65 percent market share in the consumer durables industry. The expanding Indian middle class is a major focus for multinational corporations. They compete on the basis of a firm grasp on the local market, well-known brands, and a large distribution network, whereas Indian companies compete on the basis of a firm grasp on the local market, well-known brands, and a large distribution network. Consumer durables penetration, on the other hand, is still low in India. At this juncture, this study has been undertaken for to find out the impact and reality of white goods market in India.
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Singh, Ishmeet, and Navjot Kaur. "CONTRIBUTION OF INFORMATION TECHNOLOGY IN GROWTH OF INDIAN ECONOMY." International Journal of Research -GRANTHAALAYAH 5, no. 6 (June 30, 2017): 1–9. http://dx.doi.org/10.29121/granthaalayah.v5.i6.2017.1986.
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India being a highly connected and digital ready economy remains a high potential market worldwide offering multiple opportunities. India presents a large and burgeoning end user market being world’s second largest population in world. India is all set to leapfrog into the digital world with 937 million mobile subscribers, 278 million internet users, an USD 14 billion e-Commerce market. Indian IT industry has grown many manifold since 1980s. The industry has contributed considerably to the economy in terms of GDP, employments and foreign exchange earnings. IT industry is also responsible for increasing the competence and productivity of almost all sectors of the economy like services at banks, post offices, railways, airports etc. e-governance has increased the efficiency of government offices. In this paper we have analyzed different ways in which IT industry has contributed to India’s growth.
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Aggarwal, Navdeep, and Mohit Gupta. "Empirical Evidence on the Efficiency of Index Options Market in India." Asia Pacific Business Review 5, no. 3 (July 2009): 106–16. http://dx.doi.org/10.1177/097324700900500311.
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Farooqi, Ataur Rahman, D. R. Pallavi, and M. Ramachandran. "Role of Information Technology in Banking Sector with Special Reference to State Bank of India." Recent trends in Management and Commerce 3, no. 1 (March 1, 2022): 46–52. http://dx.doi.org/10.46632/rmc/3/1/8.
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Liberalization and information technology have attracted many foreign banks to India, Opening up new markets, new products and efficient delivery avenues for the banking sector. The banking sector plays an important role in the growth of the Indian economy. Increased penetration, productivity and efficiency through the use of technology. This not only increased the cost effectiveness, but also helped to process small value transactions. It improves choices and creates new markets and improves productivity and efficiency. It is observed that financial markets in India have become a market for buyers. Commercial banks in India are now becoming supermarkets in one place with the introduction of value-added and customized products, the focus shifts from mass banking to class banking. Technology Banks do not hire people for manual operations Allows you to create a branch in the lobby of the commercial building. Tele Banking, ATMs, Internet Banking, Mobile Banking and branches through e-banking operate on a 24 X 7 operating principle. These technology based delivery channels at low cost And is used to reach maximum customers very efficiently. The beauty of these banking innovations is that this puts both the banker and the customer in a successful environment. Efficient use of technology has many times the effect on growth and development
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Mukherjee, Kedarnath, and R. K. Mishra. "International Stock Market Integration and Its Economic Determinants: A Study of Indian and World Equity Markets." Vikalpa: The Journal for Decision Makers 32, no. 4 (October 2007): 29–44. http://dx.doi.org/10.1177/0256090920070403.
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During the periods of globalization and deregulation, it has become very common for the equity market of a country to respond to the equity movements of its international trading partners from all over the world. The effort, trying to achieve in this study, relates to how Indian equity market responds to the equity price movements of other countries and vice versa. Also, the possible forces behind such interdependence among the markets are investigated. Daily closing prices of all the major equity indices from a sample of 23 countries, including India, for a period of 16 years starting from 1990 to 2005 have been used to assess the co-movement of prices among the markets. The results reveal the following : Apart from exhibiting significant annual contemporaneous measures or same day intermarket relationship among India and most of the other foreign countries, the contemporaneous feedback statistics also reveals an increasing tendency in the degree of integration among the markets over a period of time, leading to a greater co-movements and therefore higher market efficiency at the international scenario. Except for Sri Lanka and Sweden, there is a significant contemporaneous flow of information among India and 20 other foreign countries. The countries from the same region are found to be more integrated than those from the different regions. As far as the unidirectional feedback measures are concerned, though most of the measures for the whole study period are found to be significant, only few annual measures exhibit statistical significance. Interestingly, India has been found to play a stronger leading role for the countries in the Asian region except for Pakistan, Philippines, and Singapore, during the entire study period. At the same time, USA and other five out of ten European countries have been found to strongly lead the Indian market during the same period. But, unlike the contemporaneous measures, there is no fixed trend (either increasing or decreasing) in the movements of the annual unidirectional feedback measures. Thus it is very difficult to conclude that any specific market consistently leads or follows the other market. As far as the pooled regression results are concerned, out of various macroeconomic factors, only some of them including the time trend are found to be significant in assessing the contemporaneous inter-market relation. At the same time, none of the macroeconomic factors, except the volatility in bi-lateral exchange rate and volatility differential among the two markets, are found to be statistically significant in explaining the unidirectional lead-lag relationship among the markets.
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Dash, Mihir, and Arpana Muthyala. "Cost Efficiency of Indian Life Insurance Service Providers using Data Envelopment Analysis." Asian Journal of Finance & Accounting 10, no. 1 (March 8, 2018): 59. http://dx.doi.org/10.5296/ajfa.v10i1.12199.
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This study examines the cost efficiency of Indian life insurance service providers using Data Envelopment Analysis. The study was performed for a sample of fifteen of the major life insurance companies in India, accounting for 94.77% of the total market for life insurance in India, over the period of 2010-17. The study extends the scope of cost efficiency by disaggregating the premium collection into components. Also, to provide more detailed insights, the efficiency of the life insurance companies is also analysed with respect to each input and output individually.The results of the study show that the most efficient Indian life insurance companies are Life Insurance Corporation, which has been consistently 100% efficient throughout the research period, followed by SBI Life and ICICI Prudential Life, which have also shown consistently high efficiency over the research period. On the other hand, the least efficient life insurance companies are Max New York Life, followed by PNB Met Life, Reliance Life, and Bharati AXA Life. The results of the study also indicate the strengths and weaknesses of the Indian life insurance providers.
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Anjali, Rane, and Guntur Anjana Raju. "Dividend Announcement and Market Efficiency- An Empirical Study on Service Sector Companies Listed in BSE." SDMIMD Journal of Management 8, no. 1 (April 17, 2017): 1. http://dx.doi.org/10.18311/sdmimd/2017/15714.
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Dividend Policy is a crucial decision area in the field of corporate finance and informational efficiency of the market has always been an area of vital interest for financial economists. The literature review documented that in imperfect capital markets with information asymmetries, the dividend announcement affects shareholder wealth. However, very few attempts have been made so far to know dividend behavior of Service sector firms in India. The present study is a little research effort in this direction. This study analyses if the announcements of dividend of stocks listed in Bombay Stock Exchange conveys any information. Fulfilling the study, we calculated the average abnormal return by applying the event study methodology. Daily stock data of 193 firms with market model adjustments on 2436 dividend announcements were used for the period 2000 to 2016 to analyze market efficiency. This study reports stock price reactions of banking, health care, IT and realty sector surrounding 21 days event window of the dividend announcement. The results found mixed results with majority of the firms having presence of informational efficiency in Indian service sector. In Realty sectors stock price reaction to dividend announcement is not statistically significant whereas for other three sectors, Banking, IT and Healthcare, it is significant.
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Gay, Robert D. "Effect Of Macroeconomic Variables On Stock Market Returns For Four Emerging Economies: Brazil, Russia, India, And China." International Business & Economics Research Journal (IBER) 15, no. 3 (May 2, 2016): 119–26. http://dx.doi.org/10.19030/iber.v15i3.9676.
Full textAbstract:
The relationship between share prices and macroeconomic variables is well documented for the United States and other major economies. However, what is the relationship between share prices and economic activity in emerging economies? The goal of this study is to investigate the time-series relationship between stock market index prices and the macroeconomic variables of exchange rate and oil price for Brazil, Russia, India, and China (BRIC) using the Box-Jenkins ARIMA model. Although no significant relationship was found between respective exchange rate and oil price on the stock market index prices of either BRIC country, this may be due to the influence other domestic and international macroeconomic factors on stock market returns, warranting further research. Also, there was no significant relationship found between present and past stock market returns, suggesting the markets of Brazil, Russia, India, and China exhibit the weak-form of market efficiency.
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Kumar, A., and R. Mishra. "The spatial integration of potato wholesale markets of Uttarakhand in India." SAARC Journal of Agriculture 14, no. 2 (January 23, 2017): 20–30. http://dx.doi.org/10.3329/sja.v14i2.31242.
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This paper analyzes the spatial integration of potato markets in Uttarakhand using monthly wholesale price for ten years. The maximum likelihood method of cointegration developed by Johansen (1988) was used in the study. The dynamics of short-run price responses were examined using vector error correction model (VECM). The results indicated that five potato markets reacted on the long-run cointegrating equations while the speed of price adjustment in the short-run was almost absent. Moreover, it was found that the longer the distance between the markets, the weaker the integration was. To increase the efficiency of potato markets in Uttarakhand, there is need to focus on building an improved market information system. This system should be able to disseminate timely market information about price, demand and supply of produce to enable producers, traders and consumers to make proper production and marketing decisions.SAARC J. Agri., 14(2): 20-30 (2016)
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Fennetaux, Ariane. "‘Indian Gowns Small and Great’: Chintz Banyans Ready Made in the Coromandel, c. 1680–c. 1780." Costume 55, no. 1 (March 2021): 49–73. http://dx.doi.org/10.3366/cost.2021.0182.
Full textAbstract:
The article focuses on the close study of a group of eighteenth-century chintz nightgowns that were ready-made or partly ready-made in India for the European market. Whereas nightgowns are usually associated with the taste for the exotic and the spread of the fashion is sometimes linked to the availability of the garment on the ready-made market, the production of ready-made gowns in India and the methods put in place to manufacture these commodities have not been studied. Based on a close reading of surviving chintz nightgowns, the article attempts to understand production techniques put in place by Indian craftsmen to meet European demand. Material evidence suggests streamlined production processes were in place in India from the end of the seventeenth century that had no real equivalent in Europe. The article thus sheds further light on the idea of Europe's ‘Indian apprenticeship’, showing that Indian mastery of colour was coupled with production methods combining artisanal, non-mechanized work with a level of bulk production and enhanced efficiency.