An Empirical Estimation of Asymmetric information in Indian Stock Markets with Special reference to Pharmaceutical Companies

Manjunatha G; Prof. M. Mahesha

Volume : VIII, Issue : IX, September - 2019

An Empirical Estimation of Asymmetric information in Indian Stock Markets with Special reference to Pharmaceutical Companies

Manjunatha G, Prof. M. Mahesha

Abstract :

Present study investigates the problem of asymmetric information in Indian Stock markets considering the trading of equity stocks of six pharmaceutical companies– Aurobindo Pharma Ltd, Cipla Ltd, Dr Reddy Laboratories, Glaxosmithkline Pharmaceuticals Ltd, Lupin Ltd and Sun Pharmaceuticals that are listed on BSE. The study found that Probability of Informed Trading (PIN), a proxy used for asymmetric information in trading of stock markets is significant for all the companies. Even PIN’s parameters namely α,δ,μ and ε are significant. However, Results for Aurobindo Pharma Ltd, Dr. Reddy Laboratories, Glaxosmithkline pharmaceuticals and Sun Pharmaceuticals are identical in all eak periods. Similarly, Lupin Ltd and Cipla Ltd have identical results