Stock market efficiency and price behaviour Indian experience

The present book is the first of its own kind to bring together the empirical works of different researchers who have analysed share price behaviour in India in the context of efficient market hypothesis. The controversy whether major stock markets of the world are 'efficient in pricing the securities has received considerable attention from both academicians and professionals during the past two decades. The traditional view, referred to as 'Inefficient Market Hypothesis' regards the securities market as 'inefficient in pricing the listed stocks. The contrary view is that such markets are highly 'efficient' in pricing the securities and is popularly referred to as the 'Efficient Market Hypothesis'. The efficient market hypothesis has been extensively tested in the developed economies such as those of U.S., U.K., Australia etc. Insofar as the developing economies such as those of India are con cerned much less research has been under taken to investigate share price behaviour under the framework of efficient market theory.

The book deals, inter-alia with the following important and pertinent questions :

Is the Indian Stock Market 'efficient' in the 'weak form' in pricing the securities or is it possible systematically to beat the market' by utilising information contained in past prices ?

Is there a risk-return relationship or is the risk-return parity violated on the Indian Stock Exchanges ?

Are technical theories or chartist tech niques useful trading devices to consistently earn supernormal profits ?

The answers to these questions have impor tant implications for investors, investment advisors, corporate managers, policy makers and so on. Hopefully, the book would gene rate lively debate and more research efforts would be directed to study share price beha viour in the efficient market framework by utilising data from the Indian stock market.