Growth Analysis of Stock Market in India: An Empirical Study

Capital Market is a sine-quo-non for speedy growth and development of a country's economy and India is no exception to it. Capital market has two components '“ (i) Primary Capital Market and (ii) Secondary Capital Market. Transactions in the Secondary Capital Market which is popularly known as '˜Stock Market', can broadly be divided into three parts - cash market transactions, wholesale debt market transactions and derivatives market transactions. The Stock Market gives the scope of securities holders to adjust their holdings in response to changes their assessment of risk and return. An empirical study with the objective of growth analysis has been made in respect of six (06) selected parameters of secondary capital market, such as registered market intermediaries, market capitalization, turnover at cash segment of BSE & NSE, turnover in notional value of equity derivatives segment of BSE and NSE, foreign investment inflows in India and trends in net inflow of resource mobilization by mutual funds. During the period of study (2004-05 to 2013-14), there were significant growth trends observed in terms of foreign institution investors and foreign venture capital investors under intermediaries registered with SEBI, market capitalization, foreign direct investment inflow and turnover in notional value of equity derivatives segment of BSE & NSE. There were also observed that growth trends were not so much significant in case of brokers (cash segment, equity derivatives & currency derivatives), merchant bankers and number of mutual funds under intermediaries registered with SEBI, turnover at cash segment of NSE and foreign net portfolio investment. On the contrary, declining trends were observed in case of stock exchanges (cash market), turnover at cash segment of BSE and net inflow of resource mobilized by private sector mutual funds. But, in short span of time, Indian derivatives market has got a place in the list of top global exchanges. Indian capital market is now comparable to many developed markets in terms of a number of qualitative parameters. SEBI has been playing the pivotal role to these directions. Prasanta Kumar Dey"Growth Analysis of Stock Market in India: An Empirical Study" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-2 | Issue-3 , April 2018, URL: http://www.ijtsrd.com/papers/ijtsrd10895.pdf http://www.ijtsrd.com/management/accounting-and-finance/10895/growth-analysis-of-stock-market-in-india-an-empirical-study/prasanta-kumar-dey