Volume : III, Issue : V, May - 2013

Market Efficiency in Indian Cement Industry : An empirical study on Efficient Market Hypothesis

Mr. E. M. Naresh Babu

Abstract :

This paper deals with the identification of market efficiency of the Indian Stock Market. An Efficient Market is one in which the market price of a security is an unbiased estimate of its intrinsic value. According to eminent people who have studied the market efficiency, they have defined Efficient Market is one which reflects the complete available information. For the purpose of studying the Indian market efficiency, the present study considers the cement companies which are listed in the Indian Stock Exchanges. The study focuses on the aspect how far the Indian stock market is efficient and reveals the form of efficiency. Efficient Market Hypothesis (EMH) counters the Fundamental Analysis and Technical Analysis. Fundamental Analysts feel that the prices of the shares can be expected with the analysis of certain factors such as Economy, Industry and Company. Technical Analysts believe that the prices of the shares can be predicted as the history repeats. Efficient Market Hypothesis asserts that financial markets are informationally efficient. In consequence of this, one cannot consistently achieve returns in excess of average markets on a risk–adjusted basis, given the information available at the time the investment is made. The present study reveals that the Indian Cement industry is efficient in Weak form. The analytical tool used is Runs test. In all the cases, the observed runs fall in between the calculated runs.

Keywords :

Article: Download PDF   DOI : 10.36106/ijar  

Cite This Article:

Mr. E. M. Naresh Babu Market Efficiency in Indian Cement Industry : An empirical study on Efficient Market Hypothesis Indian Journal of Applied Research, Vol.III, Issue.V May 2013

Number of Downloads : 746

References :