Analysis of Weak Form Efficiency of Selected Sectoral Indices and Companies with Reference to National Stock Exchange.

The economic growth of country is linked with the financial market of the country and stock market is used as indicator of nation's economy. Capital market is an integral part of financial system and its plays a strategic role in a country's economic growth by witnessing a tremendous growth. It facilitates the exchange of funds between company as demander and investor as supplier by believing that the overall growth of economy depends on how efficiently the stock market performs. The existence of capital market enables company to obtain an alternative source of fund. On the other hand, it gives flexibility for investor to choose investment based on their preference. The company and investor who are involved in the capital market, understanding about capital market condition becomes matter in order to understand how the market is actually works. The concept of Efficient Market Hypothesis (EMH) is very vital in the development of stock market and overall economy. If the stock market is efficient then fundamental and technical analysis is a pointless exercise as all available information is already reflected in stock prices. Hence it is not possible to make any extra ordinary return above the stock market return and that in turn, leads to "Less or No Arbitrage Opportunity" in stock market. The stock market is booming at a very high rate and the number of investors investing in it is also increasing. In spite of the incremental trend in indices, the investors still have less idea and knowledge about which company and indices are best to invest their money in appropriate period. The previous studies probed the efficiency in the Zimbabwe Stock Exchange, Baltic Stock market, Taiwan stock market, Saudi stock Exchange, Russian Stock Market and determined the random walk for few indices. But in India, some researchers have analyzed the closing price (daily returns, weekly returns and monthly returns) of the stock market in particular indices. The investors are not fully clued-up about the sectoral efficiency in the Indian stock market. [ABSTRACT FROM AUTHOR]