A Study on Random Walk Hypotheses of Scrips Belonging to the Technology Sector Listed in Bse

Posted: 25 Nov 2011 Last revised: 8 Apr 2013

See all articles by Madhvi Sethi

Madhvi Sethi

Symbiosis International University - Symbiosis Institute of Business Management, Bengaluru

Nageshwar Rao

Jawaharlal Nehru Institute of Business Management

Date Written: October 1, 2006

Abstract

With the sensex touching new high this year, the stock markets have witnessed a positive sentiment surging among the investors. The common man had started to consider this investing option as a lucrative one and suddenly the market falls and the expectations of increasing returns are shattered. What happens that the behaviour of stocks shows such inconsistent movements? The technical analysts predict such movements using the past behaviour of the stock prices but do these predictions hold good in the Indian stock market? This paper tries to examine whether the predictions made by using past data of the stock prices in the technology sector holds good or not. The paper tests the validity of random walk hypothesis in the technology sector. The data comprises of stock returns of the BSE teck index from April 1998 to March 2004.

Keywords: Random Walk Hypothesis, Stock Prices, BSE

JEL Classification: G14, C22

Suggested Citation

Sethi, Madhvi and Rao, Nageshwar, A Study on Random Walk Hypotheses of Scrips Belonging to the Technology Sector Listed in Bse (October 1, 2006). Available at SSRN: https://ssrn.com/abstract=1963550

Madhvi Sethi (Contact Author)

Symbiosis International University - Symbiosis Institute of Business Management, Bengaluru ( email )

Electronic City
Phase I
Bangalore, 560100
India

Nageshwar Rao

Jawaharlal Nehru Institute of Business Management ( email )

Ujjain
India

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