Testing Efficiency in Weak Form of Indian Banking Industry
- July 23, 2020
- Posted by: RSIS
- Categories: IJRSI, Social Science
International Journal of Research and Scientific Innovation (IJRSI) | Volume VII, Issue VI, June 2020 | ISSN 2321–2705
Testing Efficiency in Weak Form of Indian Banking Industry
Meenu Baliyan1, Punjika Rathi2
1,2Assistant Professor (MBA Dept), IMS Engineering College, Ghaziabad, India
Abstract :- The reflections of any type of information on the stock prices are known as Capital market Efficiency. In this research paper researcher has tried discover the different type of capital market efficiency that Indian stock markets survive. Market efficient in three forms i.e. weak, semi strong and strong. The prospect of investors regarding future cash flows are Market efficiency talks about the accuracy and speed with which the market reflect the prospects into prices reflected in share prices. Hence investor can accordingly plan its approach of investment analysis.
Researchers have taken 3 months data to study the stock market prices of top players of banking industry of the India. Study tried to check the dependency between the stock market prices and information. Study is based on secondary data taken from stock market and it try to explore the relation of information and fluctuation in stock prices.
This paper would test the type of efficiency of Indian banking industry and its results could be applied for further portfolio management practices.
Keywords: Market efficiency, oligopoly, fundamental analysis, technical analysis, portfolio management.
I. INTRODUCTION OF THE STUDY
The main idea behind the oligopoly market is that few companies rule over many in a particular industry which offering similar types of goods and services. Competition is limited just because of limited players in an oligopoly market. Some examples of oligopoly markets are banking industry, cement industry, Cable Television Services, Entertainment Industries (Music and Film), Airline Industry, Mass Media, Pharmaceuticals, Computer & Software Industry, Cellular Phone Services, Smart Phone and Computer Operating Systems, Aluminum and Steel, Oil and Gas and many more. For the study we have considered the banking industry.
The oligopoly market is when there are few seller and they are selling homogenous or differentiated goods and services. Oligopoly markets exist between the pure monopoly and monopolistic competition, where few sellers lead the market and have control over the price of the product. This study will try to find out that oligopoly markets are not efficient. For the study banking industry has been considered.
Theory of oligopoly market describes that market price increase as the competitive prices and will be higher than the monopoly markets. Particular oligopoly solution concepts propose more exact predictions. This paper defines that the oligopoly concept can be approximate econometrically.
