Advertisement

Introduction

  • Amitava Sarkar
Chapter

Abstract

The present study investigates the working of the Indian stock market in recent years and attempts to look for functional instability, if any, embedded in the stock market. Specifically, it explores to discern whether there has been any significant change in recent years in the Indian stock market and the nature and characteristics of such changes, if any. It chooses the 9-year period from 1999 to 2008. Over this period, stock market witnessed some major price changes: one in late 1999 that ended in mid-2001, another that commenced from mid-2004 and a recent one that in effect commenced from early 2008. It seeks to identify the nature and underlying factors of such price movements. It tries to find out whether different sectors contribute equally to such price change. The study tries to identify the presence of structural break, if any, in Indian context. Moreover, it will seek to explore possible volatility transmission channels for the Indian stock market from the Indian sectoral developments as well as developments in the global market. This will further raise the issue of functional instability embedded in the stock market generating such volatility.

Keywords

Stock Market Stock Price Asset Price Price Change Structural Break 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

References

  1. 12.
    Bernanke BS (1983) Nonmonetary effects of the financial crisis in propagation of the great depression. Am Econ Rev 73:257–276Google Scholar
  2. 13.
    Bernanke BS, Gertler M (1989) Agency costs, net worth and business fluctuations. Am Econ Rev 79(1):14–31Google Scholar
  3. 21.
    Demirguc-Kunt A, Levine R (1996) Stock market development and financial intermediaries: stylized facts. World Bank Econ Rev 10(2):291–321Google Scholar
  4. 25.
    Friedman M, Schwartz AJ (1971) A monetary history of the US 1867–1960. Princeton University Press, PrincetonGoogle Scholar
  5. 31.
    Kaminsky G, Reinhart C (1996) Banking and balance of payment crisis: models and evidence. Working paper, board of governors of the federal reserve, Washington, DCGoogle Scholar
  6. 32.
    Kaminsky G, Reinhart C (1999) The twin crisis: the causes of banking and balance of payments problems. Am Econ Rev 89:473–500CrossRefGoogle Scholar
  7. 35.
    Kiyotaki N, Moore J (1997) Credit cycles. J Political Economy 105(2):211–248CrossRefGoogle Scholar
  8. 50.
    Sarkar A, Mallick SK, Roy KK, Chakraborty A, Duttachaudhuri T (2001) Financial fragility, asset bubbles, capital structure and real rate of growth – a study of the Indian economy during 1970–00. Planning Commission, Government of IndiaGoogle Scholar
  9. 53.
    Sarkar A, Mallick SK, Roy KK, Chakraborty A, Duttachaudhuri T (2001) Financial fragility, asset bubbles, capital structure and real rate of growth – a study of the Indian economy during 1970–00. Planning Commission, Government of IndiaGoogle Scholar
  10. 57.
    Stiglitz J, Weiss A (1981) Credit rationing in markets with imperfect information. Am Econ Rev 71:393–410Google Scholar

Copyright information

© Springer India Pvt. Ltd. 2012

Authors and Affiliations

  • Amitava Sarkar
    • 1
  1. 1.School of Management & SciencesWest Bengal University of TechnologySalt Lake KolkataIndia

Personalised recommendations