Noise Trading in an Emerging Market: Evidence and Analysis

  • Debasis Bagchi
Conference paper
Part of the New Economic Windows book series (NEW)


We document influence of nascent stock market noises on the stock price movement in an emerging market by examining behavior of three noise indicators given by spread of high and low quotes of the stock, spread of opening and previous closing prices and turnover. The results indicate that investors indeed use these noises but to a limited extent to predict future prices. We also find that there is no significant difference of behavior of noise traders during different economic conditions of the market, viz., falling and rising market conditions.


Stock Prex Future Price Index Point Price Discovery Noise Trader 
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    Lo A, Mackinlay C (1999) A Non-Random Walk Down Wall Street. Princeton, NJ, Princeton University Press.Google Scholar

Copyright information

© Springer-Verlag Italia 2006

Authors and Affiliations

  • Debasis Bagchi
    • 1
  1. 1.The Institute of Cost and Works Accountants of IndiaKolkataIndia

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