An Analytical Study on Volatility Patterns in the Indian Stock Market with Focus on NSE

Abstract

An Analytical Study on Volatility Patterns in the Indian Stock Market with Focus on NSE – In stock market there are many investor invest is money and some time they get profit but some time they get loss. The market is not stable is ups and downs based on demand and supply factor. To predict the market it helps the investor to make the correct decision. If the market goes up the investor also able to take decision before itself. It helps the investor to safe the capital and gain more profit.

 

Introduction

Prices of securities move up and down every day in the stock markets. These ups and downs are known by namely fluctuation in the prices. Fluctuation in the prices of a security comes from the unbalanced demand and supply o that security. If demand side of a security is greater than its demand, the price would start to go down. The relative rate of fluctuation at which rice of a security moves up and down is called volatility are in other words, volatility refers to the amount of risk about the size of changes in the security’s value.

The stock market is basically an aggregation of various buyers and seller of stock. A stock (also known as shares more commonly) in general represent ownership claims on business by a particular individual or group of people. The attempt to determine the future Value of a stock market is known as a stock market prediction. The prediction expected to be robust, accurate and efficient. The system must work according to the real-life scenarios and should be well suited to real-world settings. The system is also expected to take into account all the variables that might affect the stock value and performance.

 

Volatility in stock markets evokes varying responses from market participants. While some perceive its opportunity to make money, others perceive it as a threaten start unwinding their position. While affecting portfolio choice, changes in stock market volatility also gives some idea about the current economic state. In today’s globalized environment, increased volatility reflects global uncertainty. Volatility in the stock market as a whole can be due to macroeconomics actor, both internal and external.

Functions of Nation Stock Exchange

Need for the Study

1. It needs to raise the capital it is a global financial system
2. Regulators are there to protect the investors from abusive trading practices
3. It also use stocks for merger and acquisition transactions
4. Stock markets are central to financial planning.

Statement of the Problem

1. Stock values are changing depending on the market condition day by day.
2. They challenge is to guide the investor for the right time to buy and sell the shares.
3. There are many regression and classifiers available or the prediction.
4. Need for determining the best technique that provides better result in predicting the stock prices and give accurate trends.

Objectives of the Study

1. To Study the volatility of share prices in Nifty 50.
2. To test the significance of Volatility in Stock Market of Nifty 50.

Scope of the Study

The scope of the research comprises of information derived from secondary data from various websites.

The various information and statistics were derived from the websites of BSE, NSE, Money Control, RBI and SEBI. Sensex and NIFTY was a natural choice for inclusion in the research, as it is the most popular market indices and widely used by market participation for benchmarking.

Limitations of the Study

In this research, the factor that affects the stock return and volatility has been confined to internal variable only. No macro environment factors such as inflation, GDP have been factored in this research. Therefore future studies should aim by taking a long time series data and should incorporate macro environment variables while determining the volatility. Moreover the research has been confined only to NIFTY Index and its sectoral indices. Thus, future studies should aim to analyze cross multiple exchanges that too operating in different geographies.

Components of a Project Report

A project report varies according to the MBA final year project course at top colleges, depending on the consequences and the requirements of the concerned project. But broadly, a project covers the following components:

• Title page
• Table of contents
• Introduction
• Background of the project
• Project objectives
• Methodology
• Results
• Discussion and Analysis
• Conclusion
• Bibliography or references
• Appendices

Project Report Pages : 80

Can be used in : Finance Final Year Project

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