Factor Affecting Stock Market Volatility: Synopsis

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FACTOR AFFECTING STOCK MARKET VOLATILITY

INTRODUCTION
Due to the ever changing Global Economy and its effects, the Indian Economy is also becoming volatile. Hence the stock markets in India are having too many ups and downs. Hence many Investors are facing the problem of deciding and analyzing their investment pattern in the equity market to minimize the risk and maximize the returns.

Objective of study: To study the volatility in Indian stock market while taking SENSEX on Bombay stock Exchange as a source of secondary data which broadly represent the Indian stock market. To study the factors which are making Indian stock market volatility. To suggest the steps to be taken by investors and traders during volatility To help investors and traders in managing future volatility

Research Methodology: Sources of data:


Data used in this study is of secondary in nature. The Sensex is taken as a source of information Which widely describes Indian stock market. Here monthly prices of BSE Sensex, Inflation, IIP Numbers are taken for the study purpose.

Hypothesis:

This is the exploratory research which tries to show the factors which are making stock market Volatile. Any fluctuation in foreign market has more effect on Indian stock market than that of Domestic market. In the given volatile economic conditions, the market is efficient to any news and Information.

Scope:

This study can be used for individual who are at initial stage of investment in the stock market. To different Organization who provides tips for Buying and Selling shares. To review market forecast provided by the organization about fluctuations in the market. To make a detailed study of the causes of volatility. To help the investors and traders in analyzing markets easily. To study the various factors that affect the movement of markets and market response

Contribution from the Study:


To help the investors and traders to take right decisions at different circumstances. To help the investors and traders to make maximum profits at minimum risk. To help in analyzing and ascertaining the future movements in the market. To help the investors and traders with the tricks of playing in volatile markets.

Limitations of the study


The study can be made for larger period only, lower tenure doesnt give good results Perfect data for the study can't capture from this shorter period The time Period which is given for study is very shorter. The study is limited to Bombay Stock exchange What is true in case of BSE may not be the same for other stock exchanges.

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