Search

Initial Public Offering (IPO) is a kind of public offering in the form of companies' share which are sold to investors. An IPO is underwritten by one or more investment banks. These banks help in listing the shares on stock exchanges. The purpose of this research paper is to get a comprehensive analysis of previous research studies on the performance of IPO, which may provide the present growth and scope of research work in the field. 106 research studies on IPOs have been reviewed and outlined all the studies based on of their tools, methodology, year of the study, sample period, sample countries taken, type of studies, and sources of the study. For the present study, research articles published from 1998 to 2018 were selected for review. The outcomes of the analysis show that the number of studies on IPO rose continuously over the last seven years. The conclusion drawn from this paper may provide helpful facts regarding the following reviews of the IPO to investors, researchers, shareholders, and policymakers for taking important decisions. This study can be further refined by including the other classifications such as Google trend. [ABSTRACT FROM AUTHOR]

This paper tries to examine the impact of Ind AS on some accounting numbers and also to examine if there is any statistically significant difference among the prevailing opinions regarding Ind AS adoption in India. We took the top 45 companies from the Bombay Stock Exchange, according to their market capitalisation, and excluded banking, non-banking financial companies, and insurance companies due to non-availability of data, and made a questionnaire for opinion survey. We applied paired t-test on the secondary data and a chi-square test on the primary data. No statistically significant difference was found in the accounting numbers after the adoption of Ind AS. Results also revealed that there is homogeneity in the opinion of respondents with different work experiences and occupations regarding the impact of Ind AS on accounting numbers. Indian companies should provide more disclosure in their financial statements, so that the informational content of accounting numbers can be increased. [ABSTRACT FROM AUTHOR]

Foreign investments are the investments made by residents of a country in the financial instruments and production process of any other country. Any individual, entity or institution that invests money in the financial markets of other countries is called as Foreign Portfolio Investor. Policymakers of any country are concerned about foreign equity investors because they can withdraw their capital from a country rapidly and hence affect the stability of stock markets in the country. The present paper carries the objective of examining the influence of foreign portfolio investor trading behaviour on the stock markets of India. Various models of GARCH have been used to examine the impact and coefficients were found to be significant in all the cases. Hence the paper suggests the government and economists should design and control suitable foreign investments policies for the Indian Stock markets. [ABSTRACT FROM AUTHOR]

The capital market responds to precedent and unprecedented events. These events play an important role in market efficiency. The purpose of this paper is to elaborate the state of the stock market due to the recurring landslides in the Uttarakhand region in India. This study will help to determine the loss faced by the companies in the Indian stock market. Hence, analysing the "shock due to the natural disaster" in the stock market is an important issue. The study is based on secondary sources of information about various landslides in India. To calculate the "shock due to the natural disaster" in the stock market, we have employed event study methodology to measure this impact. The paper finds that a negative shock is brought by this catastrophic disaster on the Indian stock market. The impact of this shock is on each and every industry in the market; however, the most significant impact is felt by the top companies in the various industries. The market has shown a negative trend in its abnormal returns on and after the event day. Conversely, as the news of relief programmes were released by the government after three or four days, the market again started becoming normal. [ABSTRACT FROM AUTHOR]

Stock market returns and the capital flow of funds in the mutual funds have been universally understood to be interlinked. The prevailing more and more contribution of the mutual funds in the stock market, on the one hand, and the profound impact of rising stock market returns on getting higher investments in mutual funds, on the other, have undoubtedly made the relationship between share market and mutual fund flows to be of prime significance for the key participants and other stakeholders of both the markets. In this published research paper, the academic researcher attempts assessing the prominent presence of any association between the stock market returns and mutual fund assets under management in India by employing the multiple regression analysis. It has been reasonably concluded that there is no significant evidence of the presence of any such relationships in Indian markets during the period of study. [ABSTRACT FROM AUTHOR]

Today, an investor has an array of investment choices including the opportunities to approach overseas market which were unavailable a few decades ago. In literature, the integration of stock markets has been widely discussed and analysed. This paper examines the relationship between Indian stock market and the three stock markets of the ASEAN countries viz. Indonesia, Malaysia, and Singapore. Using the daily closing prices of the indices over a period of ten years i.e. 2004 to 2014, the study examined the inter-linkages of Indian stock market with the three markets. The Granger-causality and co-integration test were used to check the causal relationship. The study found that there is a significant short-term unidirectional influenced from the Indian stock market to the three ASEAN countries stock markets while no long-term relation (no co-integration) are found between the Indian equity market with that of three ASEAN countries viz. Indonesia, Malaysia, and Singapore equity markets. [ABSTRACT FROM AUTHOR]

One of the major reasons boosting the economic growth of India has been the unparalleled globalization resulting competition and improved innovations. As a result inflow of foreign capital has become a benchmark of economic growth. Foreign Institutional Investors (FIIs) have become mediums of international assimilation and growth incentive. Foreign capital provides domestic markets with improved technology, enhanced products, complimentary services etc. Policy initiatives to attract FII in India have also had diverse impact on the markets. The current paper makes an attempt to study the relationship and impact of FII on the sectoral market indices of the Bombay Stock Exchangeusing simple statistical tools like Correlation coefficient and Granger-Causality test. Based on the last 14 years data from 2001-2014 it was found that FII has significant impact on some of the sectoral indices in India. This has improved opportunities of financial integration enabling the returns from the sectoral indices to be favorable for the investors. [ABSTRACT FROM AUTHOR]

The present paper tries to establish the impact of various macroeconomic variables on the performance of the Islamic stock market for India. Compatible with the Efficient Market Hypothesis (EMH), a number of macroeconomic variables have been documented to impact the performance of the stock market. The Arbitrage Pricing Theory (APT) laid the theoretical basis for the relationship between stock returns and macroeconomic variables which has been later on empirically tested by a large number of studies. We have used the Ordinary Least Square (OLS) Regression to study the impact of macroeconomic variables including inflation, industrial production, exchange rate, interest rates and money supply on the Islamic stock returns. The various diagnostic tests including the Breusch-Godfray Serial Correlation Lagrange Multiplier (LM) test, the Breusch-Pagan-Godfray test and the Jarque-Berra test have been used to check whether the residuals of OLS are pure white noise. The findings of our study suggest that exchange rate and interest rates have a significant impact on the Islamic stock market. The implications of the study are that exchange rates and interest rates should be controlled so as to improve the performance of the Islamic stock market in India. [ABSTRACT FROM AUTHOR]

The paper investigates Indian momentum profitability along with its performance stability round the year using the stock price data from National Stock Exchange (NSE). Results show evidence in favour of momentum profitability over the sample period from 1997 to 2013. Moreover, the momentum performance is not specific to any particular month suggesting no influence of calendar on momentum anomaly in the Indian stock market, though momentum strategies performed differently in different calendar months, with particularly strong negative returns in the month of May. However, no statistically significant difference was observed among the mean monthly momentum returns across calendar months.Contrary to the US market findings, no January or similar April seasonality is observed in the Indian momentum profits suggesting some unique characteristics of Indian momentum profitability. In nutshell, the results from the study suggest support in favour of practical implementation of momentum strategies throughout the year in the Indian stock market. [ABSTRACT FROM AUTHOR]

In a first of its kind, this paper examines the issue of sectoral efficiency of the Indian Stock Market. For this, daily data for 11sectoral indices on NSE viz. Auto, Bank, Energy, Finance, FMCG, IT, Media, Metal, Pharma, PSU Banks, and Realty Index have been used. The study period spans from Jan 2004 to Jan 2014 covering a comprehensive 10 years including the recent global financial crisis. The analysis is done using unit root tests [Augmented Dickey Fuller (ADF), Phillips-Perron (PP) and Kwiatkowski-Phillips-Schmidt-Shin (KPSS)]and Variance ratio tests [Chow Denning Joint Test, LoMackinlay Test and Wright (2000) Test based on Ranks and Signs]. The results suggest that although overall Indian stock market seems to be weak form efficient, but different sectors comprising it are not, especially during total study period. Further we find evidence of increased inefficiency in Bank, Metal, PSU Bank and Realty sectors in the post-crisis period. This may be due to investor's overreaction in Indian stock market. Tripathi & Aggarwal (2009) have reported that Indian investors tend to overreact to bad news and hence post crisis,the price discovery mechanism was not so efficient. The findings on sectoral efficiency in India have important implications for policy makers, mutual funds, portfolio managers and investors at large. Weak form inefficiency in Bank, Metal, PSU Bank and Realty sectors is suggestive of exploitable arbitrage opportunities in these sectors. The regulators and policy makers must also note that overall market efficiency may not imply efficiency at the sectoral level; for this, more efforts and sector specific reforms need to be taken. [ABSTRACT FROM AUTHOR]

The purpose of this paper is to analyse the effect of size, age, ownership, and load on the efficiency of equity mutual funds in India. Using secondary data on sample of 105 equity mutual fund schemes in India for the period 2011-12, two-stage methodology is applied wherein Data Envelopment Approach (DEA) efficiency scores are assessed in first stage and in the second stage, categorical variable on efficiency is regressed on age, size, ownership, and load of the scheme by applying cross-sectional logistic regression. The results of the analysis suggest that increase in size increases the probability of being efficient by 26-43 percent in various estimates. The more aged funds are more efficient. Load funds are less efficient and foreign funds are more efficient but joint-venture foreign funds are less efficient. Thus results show that in country like India, there exists increasing returns to scale and experience in the market increases the efficiency. [ABSTRACT FROM AUTHOR]

The objective is to analyse the efficacy of firm structure as a corporate governance tool. For this purpose, we examine the effect of firm size, firm age, firm growth, board size, and independent directors on a board, on corporate performance. To test our hypothesis, we use a sample of 270 Indian IT companies, all of which are listed on the National Stock Exchange. Our main empirical result depicts the positive impact of firm size, firm age, and independent directors on corporate performance. The larger board size can reduce corporate performance, which can lead to a lack of coordination, flexibility, and communication. More members on a board can be the cause of conflict, either in terms of views or opinions, which ultimately leads to wastage of financial and time resources. The growth of the firm seems to have an insignificant impact on corporate performance as sales figures have a recessionary impact. [ABSTRACT FROM AUTHOR]

The foreign exchange market and the stock markets in India are among the most important financial markets that are constantly being monitored by the investors, regulators, and the policy-makers. The present study makes an attempt to investigate whether any causal relationship exists between the foreign exchange market and the stock markets in India. The BSE and the NSE annual returns have been used as a substitute for the stock prices, while the currency rate of Indian Rupee against the US Dollar (INR/USD) has been considered as a substitute for the exchange rate exposure covering a time-period of 20 years, from 1 January 2000 to 31 December 2019. The applications of the unit root or Augmented Dickey-Fuller test, Johansen cointegration, and Granger causality tests, as employed in the present study, examined the relationship between the USD/INR exchange rates and Indian stock market indices (SENSEX and NIFTY-50). The Granger causality test indicated that both the BSE and NSE stock indices granger cause INR/USD exchange rates. However, the INR/USD rates do not granger cause the BSE and NSE stock returns. The study has portrayed a unidirectional relation between the stock indices and INR/USD rates, but a bi-directional relation between the BSE and NSE stock returns. [ABSTRACT FROM AUTHOR]

The present work tries to study the degree and direction of the impact of the demonetisation move of the Central Government in India announced on the eve of November 8, 2016 on various sectors of Indian economy proxied by their barometers in the stock markets of the country. Using event study methodology with parametric and non-parametric testing, it was observed that the impact of demonetisation of High Denomination Currency Notes (HDCNs) was not evenly distributed in the Indian economy. As intended, the move had a foremost impact on the Reality sector which experienced the highest fall of over 12% on the next trading day after the announcement among all the 41 sectors studied in this article. While the IT sector and two business houses could recover to the early losses, few vital sectors succumbed to the overall negative sentiment. These sectors, Food & Agro-based Products, FMCG, Textiles, Small Cap 50 and India Manufacturing, have larger ramifications for the informal sector of Indian economy affecting employment, sustenance and economic activities. [ABSTRACT FROM AUTHOR]

The sensitivity of a financial market can be assessed by understanding the volatility in the stock returns. Volatility forecasting measures the riskiness of the investments. In a financial time series, there are periods where volatility is higher in comparison to other periods. Furthermore, the volatility in the stock movement tends to increase during economic disturbances such as recessions and financial crises due to compulsive selling and buying of stocks. The aim of the study is to conduct a sensitivity analysis of the Indian Stock Market across time and different frequencies. The S&P BSE 500 index has been selected to study the sensitivity of the Indian stock market as it represents 93% of market capitalisation of 20 major industries of the Indian economy. The daily returns, calculated using the closing value of the selected BSE index for a period of 19 years from 01-02-1999 to 31-08-2018, has been used as the variable for the study. The stationarity of time series data has been assessed using Augmented Dickey fuller test with breakpoints to identify the significant date in the time series. The Augmented Dickey Fuller test suggests that, at level difference, 18th May 2009 is a significant breakpoint date in the daily returns series, which coincides with the report on recession by National Bureau of Economic research. Hence, two time series, one before and one after 18th May 2009 were created. The normality of the two series has been tested using Jarque Bera Test, which suggests that the time series data are not normally distributed. The Autoregressive Conditional Heteroscedasticity (ARCH) model was applied to study the sensitivity of the Indian stock returns. The ARCH LM test highlights the significant existence of ARCH effect in the series before the breakpoint date, yet no ARCH effect was found in the series from 18-05-2009 to 31-8-2018. The results demonstrate that there is a significant decrease in the volatility in the daily returns after the recession period. The results of the study further suggest that volatility in daily returns existed before the period of recession, which was caused due to excessive leverage effect. However, the volatility in the daily returns has significantly reduced. This feature of the stock market movement can be attributed to increased financial literacy among investors and improved prudential norms of Securities Exchange Board of India. Hence, it can be concluded that minor fluctuation no longer cause panic amongst investor as they did before the 2009 market crash. [ABSTRACT FROM AUTHOR]

This study examines the herding amongst the investors and the contributors of market in the banking sector of Indian stock market. Examine the herding specifically from the sectoral index (bank) makes this study different from the previous studies as all the studies covered the multisectoral index in an emerging economy. The herding in the banking sector of Indian stock market has been examined by using the methodologies of Christie & Huang (1995) based on Cross-sectional standard deviation (CSSD) and Chang, Cheng and Khoranna (2000) based on Cross-sectional absolute deviation (CSAD). To analyse the data, closing values of CNX BANKNIFTY index and its component securities has been collected for a period of 7 years ranging April'2010 to Oct'2017 from the PROWESS database. Auto-correlation and heteroskedastcity is also checked for the error terms and GARCH (1, 1) model is used to correct the problem of heteroskedastcity. The present study shows no specific affirmation of herding in the banking sector of Indian stock market. An in-depth analysis aimed at measuring herding patterns in bullish and bearish intervals too shows an absence of herding in the banking sector. Herding is also not found in the extreme price movements except in 99% criterion during the extreme down market. So, mild herding is there in the extreme down market situation only. For making better investment strategies and regulations for market, the consequences of the study have meaningful proposition for investors and policy makers. [ABSTRACT FROM AUTHOR]

This study investigates the stock market integration amongst important global stock markets, namely, Australia, Canada, France, Germany, India, UK and USA to examine the short-run and long-run relationships with Indian stock market and selected developed stock markets based on time series data for the period between 2001 (January 2) and 2016 (December 31). This study also examines the possibility of portfolio diversification between the Indian stock market and the developed stock markets. Low correlation is observed between Indian stock market and France stock market that indicates the possible gains from international diversifications. Johansen cointegration test confirms a precise long-term equilibrium connection amongst all the stock markets as a widespread strength. Granger causality test results based on VECM show that both Indian stock market and USA stock market are associated in the long-run but it would take long time to return to equilibrium and Indian stock market is associated with France, Germany and USA stock markets in the short-run, which entails that investors can earn reasonable benefits from international portfolio diversification in the short-run but benefits from international portfolio diversification in the long-run are restricted. [ABSTRACT FROM AUTHOR]

Momentum strategy proposed by Jegadeesh and Titman (1993) and later improvised by Lee and Swaminathan (2000) through volume augmentation, has long been explored and tested across the world. However, the strong assumptions of zero transaction costs, freely available shorting of stocks, and infinite portfolio size restricted these researches only to academic world; a common investor remained devoid of any benefit from them. This research addressed the practical viability of the momentum strategy, both pure and volume augmented, from a small investor’s point of view after incorporating all sorts of transaction costs and restrictions. Due to various restrictions and associated costs only long side of the momentum strategy was implemented for all 16 combinations of 3, 6, 9, and 12-month portfolio formation and portfolio holding periods. Returns were adjusted for risk under Fama-French (1993) conditions to arrive at the actual returns added by the strategy. Results prove that in Indian stock market, even after accounting for all sorts of transaction costs and exchange imposed restrictions, the pure momentum strategy can be profitably exploited. Augmenting with volume information can bring about marginal improvements, though only with early momentum strategy. However, this holds good only for short portfolio formation and portfolio holding periods. Indian market does not seem to recognise or reward medium or long-term momentum in stock returns. Whether these momentum returns have their roots in behavioural, risk based or some proportion of both reasons, needs deeper investigation. [ABSTRACT FROM AUTHOR]