Economics, Econometrics and Finance
4 years ago

Indian Stock Market Found Inefficient, Investors Can Capitalize on Undervalued Securities.

arXiv (Cornell University)
Is the Indian Stock Market efficient - A comprehensive study of Bombay Stock Exchange Indices
Achal Awasthi, Oleg Malafeyev

Paper Summary

The Indian Stock Market was studied to see if it is efficient. The researchers looked at five popular stock indices on the Bombay Stock Exchange. They found that the market is not efficient, meaning there are opportunities to make more money than expected by choosing undervalued securities. The stock market in India does not follow a random walk pattern, and there is a noticeable drift in market efficiency over time. Investors can benefit from this by picking undervalued securities.

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