Weak from Efficiency on Return from Information  Technology Stocks – A Paradigm from India

Umanath Kumarasamy; Dr. P. Chellasamy

Volume : II, Issue : IX, September - 2013

Weak from Efficiency on Return from Information Technology Stocks – A Paradigm from India

Umanath Kumarasamy, Dr. P. Chellasamy

Abstract :

Weak from efficiency is a stage that current price fully reflects all the information contained in the history of past prices and denies the utility of charting and technical analysis. This issue has been researched worldwide over a long period and the vast predominance of indications exists, however, the Information Technology (IT) stocks were not analyzed that much. The current study examines the weak from efficiency or random walk in return on Indian IT stocks for the period from 1st August 2006 to 31st July 2012, which comprises 1491 available days. Descriptive statistics, Kolmogorov Smirnov test, Unit root test and Run test were applied on the major Indian IT Stocks Indices CNX IT National Stock Exchange of India (NSE). Based on the result, it was observed that Indian IT stocks market was efficient and does not follow random walk during the elected study period.