Indian Stock Market Case Study

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Indian economy is full of investment opportunities that need to be explored to earn profits. To grab the opportunities, one of the platforms is provided by stock market.
Stock market is the collection of buyers and sellers of stocks (shares) and other innovative instruments like options, derivatives, swaps, etc. It not only provides required funds for boosting the business but also provide a common trading place through the mechanism of stock exchanges.
Over the time period, Indian Stock Market has emerged as a promising market. Till date, there are 24 stock exchanges in India with BSE and NSE being the prominent and OTCEI and other regional stock exchanges.
“BSE, established in 1875, is considered to be one of Asia’s fastest stock exchanges, with a speed of 200 microseconds and one of India’s leading exchange groups and the oldest stock exchange in the South Asia region. Bombay Stock Exchange is the world's 10th largest stock market by market capitalization at $1.7 trillion as of 23 January 2015.” More than 5,000 companies are
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The theory discusses the relationship between different securities and then draws inter-relationships of risks between them. It assumes that investors are “risk averse” and so the investment decisions should be based on efficient portfolio concept depicting the investor’s preference for maximum return for the given level of risk or minimum risk for the given level of expected return. Also, securities with low or negative covariance amongst them can help reduce the risk. Roy (1952) independently developed the “safety first” model with similar features to Markowitz model but due to earlier publication of Markowitz, he is regarded as the “godfather” of portfolio theory. Tobin (1958) enlarged the Markowitz’s analysis by putting forward separation theorem suggesting manner of fund allocation between risky and risk-free
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