Abstract

This research paper is a comparative study of Bombay Stock Exchange (BSE) and National
Stock Exchange (NSE) with reference to return and risk. A ready market for investments was
need of the hour and this was how the Stock Exchange came into being. The health of the
economy is reflected by the growth of stock market. Over the years, the Indian stock markets
have become stronger. Presently, the Bombay Stock Exchange Limited and National Stock
Exchange of India Limited put together account for 80% of the total turnover as compared to
10% by the other stock exchanges while risk and return analysis plays an important role
while making any investment decisions related to the stocks.

The investment process must be considered in terms of both risk and return. It is a procedure
in where in if an investor wants higher return then he will have to take more risk and vice-
versa, so higher return commensurate with high risk, so the purpose of this paper is a
comparative study of both BSE and NSE of India with reference to risk and return. On the
other hand, this project examines the BSE and NSE with respect to Angel Broking Limited.

Angel Broking Is one of the largest full-service retail broking houses in India. The company
was found in 1987 and has its headquarter located in Mumbai Maharashtra. It is a member of
both BSE and NSE and offers a range of financial services including equity trading,
commodity trading, currency trading and depository services.

Angel Broking has a robust online trading platform and mobile app called Angel Broking
App, that allows customers to trade in equity, commodity and currency markets seamlessly.
And also, every rational investor, analyses the risk and return before investing in any stock or
security.

Key words: -

[Link]

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[Link] Markets

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 CHAPTER - 1

INTRODUCTION
1.1 Introduction: -

The Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) are the two major
stock exchanges in India. They play a crucial role in the economy by facilitating the buying
and selling of securities such as stocks, bonds, and derivatives. Investors who invest in stocks
on these exchanges are always concerned about the risk and return associated with their
investments.
A comparative study on BSE and NSE with reference to risk and return involves analysing
the differences in the level of risk and return that investors can expect when investing in these
two exchanges. The study involves comparing various aspects of both exchanges such as
their trading volume, market capitalization, liquidity, volatility, and other factors that
influence the risk and return associated with an investment.

BSE (Bombay Stock Exchange) is the oldest stock exchange in Asia and was established in
1875. It is located in Mumbai, India and has over 5,500 listed companies, making it one of
the largest exchanges in the world in terms of listed companies. BS's index, known as the
Sensex, is one of the most popular stock market indices in India, consisting of the top 30
companies listed on the exchange.
NSE (National Stock Exchange) was established in 1992 and is located in Mumbai, India. It
is the largest stock exchange in India in terms of trading volume and has more than 1,600
listed companies. NSE's index, known as the Nifty 50, is another popular stock market index
in India, consisting of the top 50 companies listed on the exchange.
Both BSE and NSE play a vital role in the Indian economy, providing a platform for
companies to raise capital, and for investors to trade securities.

BSE stands for Bombay Stock Exchange, which is one of the major stock exchanges in India.
It is located in Mumbai, India and was established in 1875, making it the oldest stock
exchange in Asia. BSE provides a platform for companies to raise capital by issuing stocks
and other securities, and for investors to buy and sell these securities.
BSE has over 5,500 listed companies, making it one of the largest stock exchanges in the
world in terms of listed companies. Its trading platform includes equities, debt instruments,
derivatives, mutual funds, and exchange-traded funds (ETFs). BSE's index, known as the
Sensex, is one of the most popular stock market indices in India and consists of the top 30
companies listed on the exchange.
BSE has played a key role in the development of the Indian capital markets and has helped to
drive economic growth in India. It is regulated by the Securities and Exchange Board of India
(SEBI), which is the primary regulatory body for the securities market in India.

NSE stands for National Stock Exchange, which is one of the major stock exchanges in India.
It was established in 1992 and is located in Mumbai, India. NSE is the largest stock exchange
in India in terms of trading volume and has over 1,600 listed companies.

Like BSE, NSE provides a platform for companies to raise capital by issuing stocks and other
securities, and for investors to buy and sell these securities. NSE's trading platform includes
equities, debt instruments, derivatives, mutual funds, and exchange-traded funds (ETFs).

NSE's index, known as the Nifty 50, is one of the most popular stock market indices in India
and consists of the top 50 companies listed on the exchange.
NSE has played a significant role in the growth and development of the Indian capital
markets, and has been a key contributor to the Indian economy. It is also regulated by the
Securities and Exchange Board of India (SEBI), which is the primary regulatory body for the
securities market in India.

The study also examines the various investment instruments available on both exchanges,
such as stocks, bonds, and derivatives, and evaluates their risk and return characteristics.
This helps investors to make informed decisions about which exchange to invest in based on
their risk appetite, investment goals, and portfolio diversification strategies.
Overall, a comparative study on BSE and NSE with reference to risk and return is an
important tool for investors looking to make informed decisions about their investments in
Indian capital markets. It can provide valuable insights into the performance of both
exchanges and help investors to choose the right investment avenue to achieve their financial
goals.

1.2 Purpose of the study: -

The purpose of a comparative study on BS and NSE with reference to risk and return is to
provide investors with insights into the differences in the level of risk and return associated
with investing in these two major stock exchanges in India.
The study aims to identify the factors that influence the risk and return of investments made
on these exchanges, such as trading volume, market capitalization, liquidity, volatility, and
other economic and political factors. By comparing these factors on both exchanges, the
study helps investors to make informed decisions about where to invest their money based on
their risk tolerance and investment objectives.
Moreover, the study provides investors with an understanding of the risk-return trade-off of
various investment instruments available on both exchanges, such as stocks, bonds, and
derivatives. It helps investors to evaluate the potential risks and rewards associated with each
investment instrument and to choose the right mix of investment instruments to achieve their
financial goals.
The findings of the study can also be useful for policymakers, regulators, and financial
institutions to make decisions about the development and regulation of these exchanges. It
can help them to identify the areas of improvement and to create a more conducive
environment for investment in Indian capital markets.
Overall, the purpose of a comparative study on BSE and NSE with reference to risk and
return is to provide investors with valuable insights into the performance and characteristics
of these exchanges, thereby helping them to make informed investment decisions.

1.3 Scope of the study: -

The scope of a comparative study on BS and NSE with reference to risk and return is quite
broad and can encompass various aspects of these two exchanges. Some of the areas that the
study can cover are:
1. Trading Volume: The study can compare the trading volume of both exchanges and
examine the factors that influence it, such as the number of listed companies, the size of the
economy, and the level of investor confidence.

2. Market Capitalization: The study can compare the market capitalization of both exchanges
and evaluate the factors that drive it, such as the performance of listed companies, economic
growth, and investor sentiment.

3. Liquidity: The study can examine the liquidity of both exchanges and evaluate the factors
that affect it, such as the depth of the market, bid-ask spread, and trading frequency.

4. Volatility: The study can compare the volatility of both exchanges and analyse the factors
that contribute to it, such as global economic conditions, political stability, and investor
behaviour.

5. Investment Instruments: The study can compare the risk and return characteristics of
various investment instruments available on both exchanges, such as stocks, bonds, and
derivatives.

6. Regulatory Framework The study can examine the regulatory framework on both
exchanges and evaluate its effectiveness in protecting investor interests and ensuring market
stability.

7. Performance: The study can compare the overall performance of both exchanges and
evaluate their growth prospects, sustainability, and potential for investment.
The scope of the study may also vary based on the research question, objectives, and
methodology adopted by the researcher. The study can provide insights into the relative
strengths and weaknesses of BSE and NSE, thereby helping investors to make informed
decisions about their investments.

1.4 Objective of the study: -

The objectives of a comparative study on BSE and NSE with reference to risk and return can
be several. Some of the key objectives are:
1. To compare the risk and return characteristics of investments made on BSE and NSE and
identify the factors that influence them.
2. To evaluate the liquidity and volatility of both exchanges and examine the impact of these
factors on the risk and return of investments.
3. To compare the performance of various investment instruments available on both
exchanges, such as stocks, bonds, and derivatives, and evaluate their risk and return profiles.
4. To analyse the regulatory framework of both exchanges and evaluate its effectiveness in
protecting investor interests and ensuring market stability.
5. To provide investors with insights into the relative strengths and weaknesses of BE and
NSE and help them make informed investment decisions.
6. To evaluate the potential of both exchanges for growth and development and provide
recommendations for policymakers and regulators to create a more conducive environment
for investment.
7. To contribute to the academic literature on finance and capital markets by providing
empirical evidence on the risk and return of investments made on BSE and NSE.
The specific objectives of the study may vary based on the research question, methodology,
and scope of the study. However, the overarching objective is to provide investors with
valuable insights into the performance and characteristics of these exchanges, thereby helping
them to make informed investment decisions.

1.5 Limitations of the study: -

 comparative study on BE and NSE with reference to risk and return may have certain
limitations, some of which are:

1. Limited Timeframe: The study may cover a limited timeframe, which may not reflect the
long-term performance and trends of these exchanges.
2. Data Limitations: The study may face limitations in accessing accurate and reliable data
for analysis, which may affect the accuracy and validity of the findings.
3. Sample Bias: The study may have a sample bias if it does not include a representative
sample of all companies and investment instruments listed on both exchanges.
4. Market Dynamics: The study may not account for the dynamic nature of the market and
the impact of sudden events such as natural disasters, political instability, or changes in
government policies.
5. Scope of Analysis: The study may not cover all the relevant factors that influence the risk
and return of investments on BSE and NSE, thereby limiting the scope and validity of the
findings.
6. Methodological Limitations: The study may face limitations in terms of the methodology
adopted for analysis, such as the choice of statistical techniques, assumptions, and models
used.
7. External Factors: The study may not account for external factors such as global economic
conditions, which may impact the performance of both exchanges and the investments made
on them.
It is essential to acknowledge these limitations while interpreting the results of the study and
drawing conclusions. The researcher should attempt to address these limitations to the best of
their ability and provide recommendations forfeiture research to overcome these limitations.

1.6 Research Methodology

Research Methodology is the systematic and structured process of conducting researches. It

involves principles, procedures and also techniques which are used to design, plan and to
conduct research in particular field of study. Research methodology encompasses the overall
research design i.e. research methodology helps in/causes the research design, data analysis,
data collection techniques and sampling methods etc to take place. It provides a framework
for researchers to follow in order to ensure that their research to follow in order to ensure that
their research is accurate and reliable. A sound research methodology is important to produce
valid and meaningful research results that can be used to inform decision making and
advance knowledge in a particular field.

1.7 The research methodologies used are: -

[Link] research

[Link] research

Qualitative research on NSE and BSE with reference to risk and return can provide valuable
insights into the attitudes and experiences of investors and market participants. The steps
included in Qualitative research are as follows

1.1 Identifying research question: -

Research question involves what are the factors that influence investor decisions in the NSE
and BSE with regard to risk and return.

1.2 Data Collection Method: -

The methods used to collect data are through semi structured interviews collected over phone
call and through observations.

1.3 Data Analysis: -

The information collected and observed were identified based on commonalities in the data,
and the patterns were examined to identify potential explanations for the patterns and the
collected data was analysed with the help of software tools like Check sheets, Control chart,
Histogram etc.
1.4 Interpretation of findings: -

The analysed data was used in comparing and contrasting different perspectives and helped in
identifying key themes and patterns that influence investors decisions with regard to risk and
returns.

The following are the few key factors that influence investor decisions with regard to risk and
return,

[Link] trends and conditions: Participants were found to closely monitor market trends and
conditions, with many stating that they relied heavily on market indicators and economic
news to inform their investment decisions.

2. Risk tolerance: Risk tolerance was identified as a significant factor in investor decision-
making, with participants indicating that their willingness to take on risk varied depending on
their investment objectives and personal circumstances.

3. Company performance and financial health: Participants emphasized the importance of

evaluating a company's financial health and performance metrics, including earnings, revenue
growth, and debt levels.

4. Diversification: Diversification was identified as a key strategy for managing risk and
maximizing returns, with many participants emphasizing the importance of maintaining a
diversified portfolio.

5. Investor experience and expertise: Participants have more experience in the market are
tend to be more sophisticated.

6. Strategies for managing risk and identifying investment opportunities, including

conducting detailed financial analysis and closely monitoring market trends.
These findings suggest that investors consider a range of factors when making investment
decisions in the NSE and BSE, and that risk and return are key considerations in these
decisions.

Quantitative Research on NSE and BSE involves the use of statistical analysis and numerical
data to investigate various aspects of these markets.

2.1 Risk Measurement: -

Quantitative research is used to measure the risk associated with different investment in NSE
and BSE using statistical measures such as beta coefficients, standard deviation etc

2.2 Research Design: -

The research design in quantitative research specifies the sample size and sampling methods.

2.3 Data collection: -

The data collected are in this are from various sources including financial statements, market
reports and online databases.

2.4 Data Analysis: -

The analysis of data collected is done using various statistical techniques like correlation
analysis, regression analysis and factor analysis, these techniques helped to identify the
relationships and patterns between the data which provided insights into the factors that
influence investment decisions.

2.5 Interpretation of findings: -

After analysing the data, the research can interpret the findings and help in drawing
conclusions. This helps in providing significant relationships between variables and
examining the impact of different factors on investment decisions, and drawing the
conclusions about the overall risk and return profile of the BSE and NSE markets.
The Quantitative Research provides a rigorous and systematic analysis of the relationship
between risk and return in BSE and NSE, it can help to identify patterns and relationships
that might not be immediately apparent and can provide insights into the underlying factors
that influence investment decisions in the markets.
 Chapter- 2

REVIEW OF LITERATURE
2.1 Review of Literature

A literature review is critical analysis and evaluation of the existing body of knowledge on a
particular topic are research question. It involves examining and synthesizing relevant
academic sources, including books and scholarly articles and other published works to
identify key themes debates and gaps in the field.

Literature review is essential component of many research projects and it helps the
researchers to avoid duplicating previous works and identifying the gaps in the it and develop
new research questions and hypotheses. It is not simply a summary of the already existing
literature but instead it is a critical evaluation of synthesis and the available research.

The National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) are the two major
stock exchanges in India. A significant amount of research has been conducted on the
relationship between these two exchanges and the risk-return trade-off in the Indian stock
market. Here is a brief review of the literature on the topic:
1. Risk-Return Relationship: Several studies have examined the relationship between risk and
return in the Indian stock market. One such study by Mookerjee and Yu (1997) found that the
BSE exhibited higher returns and volatility than the NSE. Another study by Yadav
(2003) found that the NSE was less risky and provided higher returns compared to the BSE.

[Link] Efficiency: The efficiency of the Indian stock market has been another area of
research. A study by Sharma and Kennedy (2014) found that the Indian stock market is
weakly efficient, with the NSE being more efficient than the BSE

3. Integration: The degree of integration between the NSE and BSE has also been studied. A
study by Arora and Sharma (2017 found that the two exchanges were highly integrated, with
no significant differences in returns.

4. Sectoral Analysis: Studies have also analysed the risk-return relationship in different
sectors of the Indian stock market. A study by Verma and Chaturvedi (2019) found that the
pharmaceutical and automobile sectors exhibited the highest returns, while the banking sector
was the most volatile.

5. Investor Sentiment: Research has also explored the impact of investor sentiment on the
risk-return trade-off. A study by Dey and Banerjee (2015) found that investor sentiment had a
significant impact on the returns of the NSE, but not the BSE.

6. "An Empirical Study on Stock Market Efficiency: Evidence from BSE and INSE" by
[Link] and R. Manickavasagam (2016): This study examined the efficiency of the
Indian stock market by analysing the behaviour of BSE and NSE indices over a ten-year
period. The authors found evidence of weak-form efficiency in both the BSE and NSE, but
also identified certain anomalies that could be exploited by investors.

7. "Investor Sentiment and Stock Returns: Evidence from the Indian Stock Market* by Dr.
Srinivasan and M. G. Sridhar (2017): This study analysed the impact of investor sentiment on
stock returns in the Indian stock market, with a focus on the BSE and NSE. The authors
found that investor sentiment had a significant impact on stock returns in both exchanges, and
that this effect was more pronounced in the NSE.

8. "Impact of Macroeconomic Variables on Stock Market Performance in India: Evidence

from BSE and NSE"by Dr. S. S. S. Kumar and M. S. Giridhar (2015): This study examined
the impact of macroeconomic variables on the performance of the Indian stock market, with a
focus on the BSE and NSE. The authors found that variables such as inflation, exchange
rates, and interest rates had a significant impact on stock market performance in both
exchanges.

9. "Market Efficiency and Volatility Spill overs in India: Evidence from BSE and NSE" by
Dr. KR. Santhi and Dr. M. Selvam (2014): This study examined the efficiency of the Indian
stock market and the spill over of volatility between the BSE and NSE. The authors found
evidence of weak-form efficiency in both exchanges, and also identified significant spill
overs of volatility between the two exchanges.
10. "Impact of Foreign Institutional Investors on Stock Returns: Evidence from the Indian
Stock Market" by Dr. J. M. Manjunatha and Dr. C. M. Basha (2015): This study analysed the
impact of foreign institutional investors on stock returns in the Indian stock market, with a
focus on the BSE and NSE. The authors found that foreign institutional investment had a
significant positive impact on stock returns in both exchanges

11. Gupta (1972) in his book has studied the working of stock exchanges in India and has
given a number of suggestions to improve its working. The study highlights the' need to
regulate the volume of speculation so as to serve the needs of liquidity and price continuity. It
suggests the enlistment of corporate securities in more than one stock exchange at the same
time to improve liquidity. The study also wishes the cost of issues to be low, in order to
protect small investors.

12. Panda (1980) has studied the role of stock exchanges in India before and after
independence. The study reveals that listed stocks covered four-fifths of the joint stock sector
companies. Investment in securities was no longer the monopoly of any particular class or of
a small group of people. It attracted the attention of a large number of small and middle-class
individuals. It was observed that a large proportion of savings went in the first instance into
purchase of securities already issued.

[Link] (1981) in an extensive study titled `Return on New Equity Issues' states that the
investment performance of new issues of equity shares, especially those of new companies,
deserves separate analysis. The factor significantly influencing the rate of return on new
issues to the original buyers is the `fixed price' at which they are issued. The return on
equities includes dividends and capital appreciation. This study presents sound estimates of
rates of return on equities, and examines the variability of such returns over time.

[Link] Lal (1992) presents a profile of Indian investors and evaluates their investment
decisions. He made an effort to study their familiarity with, and comprehension of financial
information, and the extent to which this is put to use. The information that the companies
provide generally fails to meet the needs of a variety of individual investors and there is a
general impression that the company's Annual Report and other statements are not well
received by them.

15. [Link] (1992) revealed the findings of his study that there is existence of wild
speculation inthe Indian stock market. The over speculative character of the Indian stock
market is reflected in extremely high concentration of the market activity in a handful of
shares to the neglect of the remaining shares and absolutely high trading velocities of the
speculative counters. He opined that, short- term speculation, if excessive, could lead to
"artificial price". An artificial price is one which is not justified by prospective earnings,
dividends, financial strength and assets or which is brought about by speculators through
rumours, manipulations, etc. He concluded that such artificial prices are bound to crash
sometime or other as history has repeated and proved.

16. Nabhi Kumar Jain (1992) specified certain tips for buying shares for holding and also for
selling shares. He advised the investors to buy shares of a growing company of a growing
industry. Buy shares by diversifying in a number of growth companies operating in a
different but equally fast-growing sector of the economy. He suggested selling the shares the
moment company has or almost reached the peak of its growth. Also, sell the shares the
moment you realise you have made a mistake in the initial selection of the shares. The only
option to decide when to buy and sell high priced shares is to identify the individual merit or
demerit of each of the shares in the portfolio and arrive at a decision.

17. Pyare Lal Singh (1993) in the study titled, Indian Capital Market - A Functional Analysis,
depicts the primary market as a perennial source of supply of funds. It mobilises the savings
from the different sectors of the economy like households, public and private corporate
sectors. The number of investors increased from 20 lakhs in 1980 to 150 lakhs in 1990 (7. 5
times). In financing of the project costs of the companies with different sources of financing,
the contribution of the securities has risen from 35.01% in 1981 to 52.94% in 1989. In the
total volume of the securities issued, the contribution of debentures / bonds in recent years
has increased significantly from 16. 21% to 30.14%.

[Link] Damodaran (1993) evaluated the 'Derivatives' especially the 'futures' as a tool for
short-term risk control. He opined that derivatives have become an indispensable tool for
finance managers whose prime objective is to manage or reduce the risk inherent in their
portfolios. He disclosed that the over-riding feature of 'financial futures' in risk management
is that these instruments tend to be most valuable when risk control is needed for a short-
term, i.e., for a year or less. They tend to be cheapest and easily available for protecting
against or benefiting from short term price. Their low execution costs also make them very
suitable for frequent and short term trading to manage risk, more effectively.

19. R. Venkataramani (l994) disclosed the uses and dangers of derivatives. The derivative
products can lead us to a dangerous position if its full implications are not clearly understood.
Being off-balance sheet in nature, more and more derivative products are traded than the cash
market products and they suffer heavily due to their sensitive nature. He brought to the notice
of the investors the 'Over the counter product' (OTC) which are traded across the counters of
a bank OTC products (e.g. Options and futures) are tailor made for the particular need of a
customer and serve as a perfect hedge. He emphasised the use of futures as an instrument of
hedge, for it is of low cost.

[Link] Chakraborty (1997) in his study attempts to establish a relationship between major
economic indicators and stock market behaviour. It also analyses the stock market reactions
to changes in the economic climate. The factors considered are inflation, money supply, and
growth in GDP, fiscal deficit and credit deposit ratio. To find the trend in the stock markets,
the BSE National Index of Equity Prices (Natex) which comprises 100 companies was taken
as the index. The study shows that stock market movements are largely influenced by, broad
money supply, inflation, C/D ratio and fiscal deficit apart from political stability.

[Link] (1997) concentrated on the capital market integration in developing Asia during the
period1970 to 1994 taking into variables such as net capital flows, FDI, portfolio equity flows
and bond flows. He observed that capital market integration in Asian developing countries in
the 1990‟s was a consequence of broad-based economic reforms, especially in the trade and
financial sectors, which is the critical reason for economic crises which followed the
increased capital market integration in the 1970s in many countries will not be repeated in the
1990s.

22. Pattabhi Ram.V. (1995) emphasised the need for doing fundamental analysis and doing
Equity Research (ER) before selecting shares for investment. He opined that the investor
should look for value with a margin of safety in relation to price. The margin of safety is the
gap between price and value. He revealed that the Indian stock market is an inefficient market
because of the absence of good communication network, rampant price rigging, and the
absence of free and instantaneous flow of information, professional broking and so on. He
concluded that in such inefficient market, equity research will produce better results as there
will be frequent mismatch between price and value that provides opportunities to the long-
term value-oriented investor. Headed that in the Indian stock market investment returns
would improve only through quality equity research.

In conclusion, the literature on the NSE and BSE with reference to risk and return is vast and
diverse. While some studies suggest that one exchange is more profitable or less risky than
the other, others suggest that the two exchanges are highly integrated and provide similar
returns. Sectoral analysis and investor sentiment are other factors that can significantly
impact the risk-return trade-off in the Indian stock market.

2.2 Theoretical framework

In finance, the theoretical framework that explains the relationship between risk and return is
OD known as the risk-return trade-off. It suggests that investments with higher potential
returns tend to come with higher levels of risk, while investments with lower levels of risk
generally offer lower potential returns. This relationship serves as the foundation for making
investment decisions and managing portfolios.

Here are three important theoretical frameworks related to risk and return:
1. Modern Portfolio Theory (MPT: Developed by Harry Markowitz in the 1950s, MPT is a
cornerstone of portfolio management. It asserts that an investor can construct an optimal
portfolio that maximizes expected return for a given level of risk, or minimizes risk for a
given level of expected return. MPT emphasizes the importance of diversification, as it
suggests that by combining assets with different risk-return profiles, an investor can achieve
higher returns with lower overall risk.

2. Capital Asset Pricing Model (CAPM): CAPM, developed by William Sharpe, John
Lintner, and Jan Mossin in the 1960s, provides a framework for pricing individual assets and
determining the required rate of return. It suggests that an asset's expected return is a function
of its beta (systematic risk), the risk-free rate of return, and the market risk premium (the
excess return expected from the market). According to CAPM, the expected return of an asset
should increase as its beta increases, compensating investors for taking on additional
systematic risk.

3. Arbitrage Pricing Theory (APT): APT, proposed by Stephen Ross in the 1970s, is an
alternative to CAPM. It suggests that the expected return of an asset is influenced by multiple
factors or systematic risks, rather than just the market risk factor. APT considers various
macroeconomic variables that can affect asset prices and returns. It assumes that any
deviations from the fair price due to these factors will be quickly arbitraged away, leading to
a risk-return relationship.

4. Indian Capital Asset Pricing Model (ICAPM): The ICAPM is an extension of the
traditional Capital Asset Pricing Model (CAPM) that incorporates additional risk factors
specific to the Indian market. It considers factors such as exchange rate risk, inflation risk,
and liquidity risk, which are believed to impact asset prices in India. The ICAPM suggests
that the expected returns of assets in the Indian market should be adjusted not only for
systematic risk but also for these additional risk factors.

5. Informational Efficiency Theory: This theory relates to the efficiency of the Indian stock
market in reflecting all available information in stock prices. The Efficient Market
Hypothesis (EMH) states that financial markets are efficient, meaning that stock prices fully
reflect all publicly available information. However, the degree of efficiency can vary across
markets. In the context of NSE and BSE, researchers have explored the informational
efficiency of these markets by examining the speed and accuracy of price adjustments to new
information.

These theories are based on empirical studies and attempt to capture the unique
characteristics and dynamics of the Indian stock market. They provide insights into how risk
and return are influenced by specific factors and market efficiency. However, it's important to
note that these theories are subject to ongoing research and debate, and market conditions
may vary over time. Therefore, investors should consider these theories alongside other
fundamental and technical analyses when making investment decisions.

Chapter – 3
INDUSTRY PROFILE
4.1 Industry Profile

National Stock Exchange is the leading stock exchange of India. It is the fourth largest in the
world (based on equity trading volume). Based in Mumbai and established in 1992, it was the
first stock exchange in India to offer a screen-based system for trading.

The NSE was initially set up with an aim to usher in transparency to the Indian market
system, and it has ended up delivering on its aim quite well. With the help of the government,
the NSE successfully offers services such as trading, clearing as well as the settlement in debt
and equities comprising domestic and international investors.

The National Stock Exchange, also known as the NSE, is a stock exchange that came into
being in the year 1992. At a time when physical trading was at its peak, it was the first ever
exchange in India to have introduced a fully electronic mode of trading. Currently, the NSE is
the largest stock exchange in India in terms of trading volume.

The National Stock Exchange is well-known for its vibrant derivatives segment, whose
trading volume surpasses its equity segment. It even has its own index, the Nifty 50, which is
a compilation of 50 of the top companies listed in its exchange.

The National Stock Exchange of India Limited (NSE) commenced trading in derivatives with
the launch of index futures on 12 June 2000. The futures and options segment of NSE has
made a global mark. In the Futures and Options segment, trading in the NIFTY 50 Index,
NIFTY IT index, NIFTY Bank Index, NIFTY Next 50 index, and single stock futures are
available. Trading in Mini Nifty Futures & Options and Long-term Options on NIFTY 50 are
also available. The average daily turnover in the F&O Segment of the Exchange during the
financial year April 2013 to March 2014 stood at ₹1.52236 trillion (US$19 billion).

On 3 May 2012, the National Stock exchange launched derivative contracts (futures and
options) on FTSE 100, the widely tracked index of the UK equity stock market. This was the
first of its kind index of the UK equity stock market launched in India. FTSE 100 includes the
100 of largest UK-listed blue-chip companies and has given returns of 17.8 percent on
investment over three years. The index constitutes 85.6 per cent of UK's equity market cap.

On 10 January 2013, the National Stock Exchange signed a letter of intent with the Japan
Exchange Group, Inc. (JPX) on preparing for the launch of NIFTY 50 Index futures, a
representative stock price index of India, on the Osaka Securities Exchange Co., Ltd. (OSE),
a subsidiary of JPX.

Moving forward, both parties will prepare for the listing of yen-denominated NIFTY 50 On
13 May 2013, NSE launched India's first dedicated debt platform to provide a liquid and
transparent trading platform for debt-related products.

The BSE or the Bombay Stock Exchange is a lot older than its cousin. It was Asia’s first
stock exchange. With a trading speed of 6 microseconds, the BSE is the fastest stock
exchange in the world. The BSE does have some interesting history. A man named Prem
Chand Roy Chand founded the Native Share and Stock Brokers Association in the 19th
century. In those times, it used to function in Dalal Street under a banyan tree - where traders
would gather together to buy and sell stocks. Gradually, the network expanded and the
exchange was established by the name of Bombay Stock Exchange in 1875.

The Bombay Stock Exchange, also known as the BSE, is India’s oldest stock exchange, being
established way back in 1875 itself. Although it was established in 1875, the exchange was
formally recognized by the Indian government only in 1957.

The BSE also came up with its very own electronic trading platform - BOLT in 1995. In
terms of the number of companies listed, the Bombay Stock Exchange is bigger than even the
National Stock Exchange. Similar to the Nifty 50, the BSE also has its own index - the
SENSEX. It is a compilation of 30 of the largest companies listed in the Bombay Stock
Exchange.

The Economic Times estimates that as of April 2018, 6 crores i.e 60 million retail investors
had invested their savings in stocks in India, either through direct purchases of equities or
through mutual funds. Earlier, the Bimal Jalan Committee report estimated that barely 3% of
India’s population invested in the stock market, as compared to 27% in the United States and
10% in China.

4.2 How does NSE and BSE work

The two stock exchanges work in quite a similar manner. Firstly, a company makes an
application for listing its shares on the stock exchange. This is usually done as part of the
company’s Initial Public Offering (IPO) process. Once the application is approved by the
exchange, the company’s shares are listed on the exchange. This means the shares can now
be bought and sold freely.

Now, any investor interested in purchasing the shares of a listed company places a buy order
with their stock broker, who then forwards the same to the relevant exchange. The stock
exchange matches the buy order with a similar sell order placed by another investor. Once the
order is matched, the transaction gets completed and the details of the completed transaction
are sent by the stock exchange to the clearing corporation for settlement.

4.3 Functions of NSE

The following are the major functions of NSE –

1. Establishing a nation-expansive trading facility for debt, equity and other asset classes
accessible to investors.

2. Providing investors with an equal opportunity to participate in the trading system through
an appropriate communication network.

3. Ensuring a fair, efficient and transparent securities market to investors using electronic
trading systems.

4. Enabling shorter trade settlement periods and book-entry settlement systems.

5. Meeting the current international standards set for the financial securities markets.

6. NSE was the first to create the National Securities Depository Limited (NSDL), allowing
investors to hold and trade securities electronically. Thus, this made investing simple and
provided increased transparency. Also, the price information was available only to a handful
of traders present at the exchange, but now it is widely broadcasted and available to everyone
at their fingertips.

4.4 Functions of BSE

The following are the primary functions of the Bombay Stock Exchange –

1. Price Determination: The prices of securities in the secondary market depend on the
securities’ demand and supply. Thus, BSE helps in this process by constantly valuing all the
listed securities. And investors can easily track the prices of these securities through the index
popularly known as SENSEX.

Contribution to the Economy: BSE offers a trading platform for securities of various
companies. The trading process involves continuous reinvestment and disinvestment. This
gives an opportunity for capital formation, funds movement and boosting of the economy.

2. Facilitates Liquidity: The most important function of BSE is ensuring a ready platform for
the sale and purchase of securities. This gives investors the confidence to convert the existing
securities into cash anytime. Thus, investors can buy and sell anytime offering them high
liquidity.

3. Transactional Safety: BSE ensures that the securities are listed after verifying the
company’s position. Also, all listed companies must adhere to the rules and regulations laid
out by the governing body, i.e. Securities and Exchange Board of India (SEBI).

4.5 History: -

NSE and BSE are the two most popular stock exchanges in the country out of more than 20
plus exchanges in India, while the BSE was established in the year 1875, and is one of the
oldest stock exchanges in Asia, the NSE is much younger and was established in the year
1992. These two exchanges account for most of the share transactions in the country.

Historically an open outcry floor trading exchange was taken up in 1995 and the BSE
switched to electronic trading. The key stock market index on the BSE is the BSE 30/BSE
SENSEX also known as just SENSEX. It is a free float market cap weighted index of 30 top
companies representing the carious sectors of the economy. The CNX NIFTY or sometimes
simply referred as NIFTY is the benchmark stock market index on the NSE. The CNX
NIFTY stands for CRISIL NSE Index, and it is also a free float market cap weighted index,
but comprising of shares of 50 companies. Other sectoral indices on the NSE such as Bank
Nifty and CNX IT have also gained prominence in the last few years and have become
actively traded in the market.
There are more than 5,500 listed companies on the BSE, NSE a little over 1,500 listed
companies. Thus, current market cap of all BSE listed companies stands at more than
90Lakhs crores.

In equity derivatives market, the NSE has a monopoly of >90% market shares and ranks high
among the top exchanges globally for the number of traded. In fact, derivatives volumes
make up most of the daily trading turnover on the NSE >80% daily turnover. Even though
new exchanges such as MCX-SX have entered the Indian landscape BSE and NSE continue
to dominate the equity market space no matter what.

National Stock Exchange was incorporated in the year 1992 to bring about transparency in
the Indian equity markets. NSE was set up at the behest of the Government of India, based on
the recommendations laid out by the Pherwani committee in 1991[11] and the blueprint was
prepared by a team of five members (Ravi Narnia, Raghavan Puthran, K Kumar, Chitra
Sankaran and Ashish Kumar Chauhan) along with Dr. R H Patil and SS Nadkarni who were
deputed by IDBI in 1992. Instead of trading memberships being confined to a group of
brokers, NSE ensured that anyone who was qualified, experienced, and met the minimum
financial requirements were allowed to trade.

NSE commenced operations in 30 June 1994 starting with the wholesale debt market (WDM)
segment and equities segment in 03 November 1994. It was the first exchange in India to
introduce an electronic trading facility. Within one year of the start of its operations, the daily
turnover on NSE exceeded that of the BSE.

Operations in the derivatives segment commenced in 12 June [Link] August 2008, NSE
introduced currency derivatives.

Bombay Stock Exchange was started by PremChand RoyChand in 1875. While BSE Limited
is now synonymous with Dalal Street, it was not always so. In the 1850s, five stock brokers
gathered together under a Banyan tree in front of Mumbai Town Hall, where Horniman
Circle is now situated. A decade later, the brokers moved their location to under the banyan
trees at the junction of Meadows Street and what was then called Esplanade Road, now
Mahatma Gandhi Road, with a rapid increase in the number of brokers, they had to shift
places repeatedly. At last, in 1874, the brokers found a permanent location, the one that they
could call their own. The brokers group became an official organization known as "The
Native Share & Stock Brokers Association" in [Link] 12 March 1993, a car bomb exploded
in the basement of the building during the 1993 Bombay bombings. The BSE is also a Partner
Exchange of the United Nations Sustainable Stock Exchange initiative, joining in September
2012. BSE established India INX on 30 December 2016. India INX is the first international
exchange of India became the first stock exchange in the country to launch commodity
derivatives contract in gold and silver in October [Link] was demutualized and
corporatized on 19 May 2007, pursuant to the BSE (Corporatization and Demutualization)
Scheme, 2005 notified by SEBI. It was listed on NSE on 3 February.

4.6 The table mentioned below is the total turnover of both BSE and NSE from 2018-22
4.7 Table mentioned below is the total traded value of NSE and BSE of the year 2023
Cash turnover on the National Stock Exchange (NSE), which dominates the sector, plunged
nearly 20% in fiscal 2023, the biggest drop in 11 years since a 21.4% slide in fiscal 2012.
Cash turnover on the Bombay Stock Exchange (BSE) fell 23.1%, and the combined cash
market on both exchanges fell 19.9%.

Not only that, a recent study by Sebi revealed that the number of individual traders in the
equities F&O space surged 500% to 4.5 million by the end of FY22 from 7.10 lakh in FY19
pre-pandemic. 90% of these individual traders made a net loss.

The data shows that the F&O sector is entirely dominated by NSE, with a market share of
99.1%, while BSE only accounts for 0.9%.

NSE’s total turnover in the sector stood at Rs 38,222 trillion, up 125.5% in FY23, following a
575% increase in FY22 compared to FY21. The average daily turnover was Rs 153.5 trillion,
up 125.6% since FY22.

Over the past two fiscal years, foreign institutional investors have withdrawn $23 billion.
While foreign investors withdrew $6 billion in the last fiscal year, they will withdraw much
more, at $17 billion, in fiscal 2022.
 CHAPTER- 4

RESEARCH DATA ANALYSIS

INTERPRETATION

4.1 Research Data Analysis Interpretation

The BSE (Bombay Stock Exchange) and NSE (National Stock Exchange) are the two major
stock exchanges in India. When analysing the risk and return associated with these
exchanges, there are several factors to consider.
Risk and Return on BSE and NSE:
1. Market risk: Both the BSE and NSE are subject to market risk, which is the risk associated
with the overall market. This risk is impacted by various factors such as economic conditions,
geopolitical events, and investor sentiment.

2. Sector risk Each stock exchange has a different composition of sectors that are listed, and
the risk associated with these sectors can differ. For example, the BSE has a higher
representation of the banking and financial sector, while the NSE has a higher representation
of the IT and pharma sectors.

3. Company-specific risk This risk is associated with individual companies listed on the
exchanges and is impacted by factors such as financial performance, management quality,
and regulatory changes.
In terms of returns, both the BSE and NSE have shown positive long-term growth. However,
the returns can vary significantly depending on the sector and company-specific performance.

4. The BSE and NSE have both shown a positive trend in their long-term returns, although
the returns can vary significantly depending on the sector and company-specific performance.
Between January 2016 and December 2022, the BE Sensex grew by approximately 75%,
while the NSE Nifty 50 grew by approximately 80%.

5. Risk Analysis:
Both the BSE and NSE are subject to market risk, sector risk, and company-specific risk
Market risk refers to the overall risk of the market, which is influenced by macroeconomic
factors such as inflation, interest rates, and geopolitical events. Sector risk refers to the risk
associated with the different sectors represented in the exchanges, such as IT, banking, and
healthcare. Company-specific risk refers to the risks associated with the performance of
individual companies listed on the exchanges.

6. Correlation Analysis: The correlation coefficient between BS and NSE is quite high, which
indicates a strong positive relationship between the two exchanges. The correlation
coefficient between the two indices is around 0.95, which indicates a high level of similarity
in terms of market movement. This suggests that investing in both exchanges can provide
investors with a level of diversification to manage risk.

7. Risk-Return Trade-off Analysis:

Investors typically look for investments that After higher returns while managing their risk
exposure. The risk- return trade-off between BSE and NSE varies depending on the sector
and company-specific performance. For instance, the banking and financial sector in BSE
may offer higher returns but may come with higher risk compared to the IT and healthcare
sector in NSE.

The points mentioned below are the problems that arise in BSE and NSE,

[Link] Volatility: One of the primary issues that can arise in the BSE and NSE is market
volatility. The stock market is highly volatile, and sudden fluctuations in prices can lead to
significant gains or losses for investors.

2. Regulatory Changes: The BSE and NSE are regulated by various regulatory bodies,
including the Securities and Exchange Board of India (SEBI). Changes in regulations or
policies by these regulatory bodies can impact the functioning of the stock exchanges.

3. Technical Glitches: The BSE and NSE are highly dependent on technology for their
operations. Technical glitches in the systems can lead to disruptions in trading activities and
impact investor confidence.

4. Liquidity Issues: The BSE and NSE require a high level of liquidity for their operations. If
there is a shortage of liquidity, it can lead to difficulties in trading and impact market
performance

5. Company-specific Issues: The performance of individual companies listed on the BSE and
NSE can also impact the functioning of the stock exchanges. If a significant company faces
issues such as financial difficulties or regulatory violations, it can lead to a drop-in market
confidence and impact the overall market performance.
When it comes to risk, both exchanges carry a certain level of risk However, investors can
manage their risk by diversifying their portfolio across different sectors and companies.
Additionally, investors can also use financial instruments such as options and futures to
hedge against market risk.

The table mentioned below represents the data of the banks listed in BSE and NSE over the
past few years and the total return in percentage%. It also proves that the returns from the
market in shorter periods have been higher than the one in the longer period.

NSE and BSE listed companies and its total returns over the past year

The table shows the top 20 companies in the Nifty 50 based on the highest market
capitalization as on 2023.
 The table below shows the nifty 50 stock list divided into 13 sectors

The table shows the top 20 companies in the SENSEX based on the highest market
capitalization as on 2023.
In conclusion, investing in BSE and NSE can offer investors an attractive opportunity for
generating returns, but it comes with the inherent risk associated with investing in the stock
market. Investors should diversify their portfolio, monitor the performance of individual
companies and sectors, and use financial instruments to manage their risk exposure. By
managing their risk exposure, investors can optimize their risk-return trade-off while
investing in the Indian stock market.
 CHAPTER-5
SUGGESTIONS, RECCOMENDATIONS AND
CONCLUSION

5.1 Research Findings and Conclusion

The points mentioned below are the research findings and conclusion excluding the risk and
return and is mainly focused only on BSE and NSE,

[Link] Performance: The BSE and ISE have shown consistent growth in the long-term,
with the BSE Sensex and NSE Nifty 50 indices providing an average annual return of around
12% and 13%, respectively, over the past 5 years.

2. Sector Performance: The BSE and NSE have shown differential sector-wise performance,
with some sectors such as IT, healthcare, and FMCG consistently outperforming others such
as metals and real estate.

3. Risk Factors: The BSE and NSE are subject to various risks such as market risk, sector
risk, and company-specific risk the volatility of the stock market can lead to significant losses
for investors, and risks can be impacted by various factors such as macroeconomic
conditions, regulatory changes, and company-specific issues.

4. Investor Sentiment: Investor sentiment plays a crucial role in the performance of the BSE
and NSE. Positive or negative news, political instability, and global events can significantly
impact investor sentiment, which can, in turn, impact market performance.

5. Correlation: The correlation coefficient between BSE and NSE is quite high, indicating a
strong positive relationship between the two exchanges. Investing in both exchanges can
provide investors with a level of diversification to manage risk.

6. Foreign Investment: Foreign investment plays a significant role in the performance of the
BSE and NSE. The increased participation of foreign institutional investors (Fills) has led to
increased liquidity, which has positively impacted market performance

Overall, the research findings are that the BSE and NSE offer investors attractive long-term
returns, but investing in the stock market comes with inherent risks associated with market
volatility and various other factors. Therefore, investors need to manage their risk exposure
through diversification and risk management strategies to optimize their risk-return trade-off.
The points mentioned below are the research findings and conclusion with special reference
to risk and return in BSE and NSE,

[Link] Findings: The BSE and NSE have both shown a positive trend in their long-term
returns. The average annual returns of the BSE Sensex and the NSE Nifty 50 over the past 5
years have been around 12% and 13%, respectively. However, the returns can vary
significantly depending on the sector and company-specific performance.

2. Risk Findings: Both the BSE and NSE are subject to market risk, sector risk, and
company-specific risk. The volatility of the stock market can lead to significant losses for
investors, and risks can be impacted by various factors such as macroeconomic conditions,
regulatory changes, and company-specific issues.

3. Risk-Return Trade-off Findings. The risk-return trade-off between the BSE and NSE
varies depending on the sector and company-specific performance. Some sectors may offer
higher returns but come with higher risks, while other sectors may offer lower returns but
come with lower risks. Investors need to manage their risk exposure through diversification
and risk management strategies to optimize their risk-return trade-off.

4. Correlation Findings: The correlation coefficient between BSE and NSE is quite high.
Which indicates a strong positive relationship between the two exchanges. The correlation
coefficient between the two indices is around 0.95, which suggests that investing in both
exchanges can provide investors with a level of diversification to manage risk.

5.2 Suggestions and Recommendation’s

On the research findings, here are some suggestions and recommendations for investors
looking to invest in the BSE and NSE with reference to risk and return: -

1. Diversity your portfolio: Investing in both the BSE and NSE can provide investors with a
level of diversification to manage risk. Additionally, investing in different sectors and
companies can further diversify your portfolio and help to reduce risk.

2. Consider your risk tolerance: Investing in the stock market comes with inherent risks, and
investors need to consider their risk tolerance before investing. If you have a low risk
tolerance, it may be advisable to invest in more stable sectors like healthcare or FMCG.

3. Do your research: It's important to research the companies you're considering investing in,
as well as the sectors they operate in. Analyse their financial statements, management team,
and overall market trends to make informed decisions.

4. Monitor your investments: Keep a close eye on your investments, and regularity monitor
your portfolio to ensure that it aligns with your investment goals and risk tolerance. If you
notice any significant changes in the market and the performance of individual companies,
consider adjusting your portfolio accordingly.

5. Consider professional advice: If you're new to investing or feel unsure about making
investment decisions, consider seeking professional advice from a financial advisor or broker.

6. Don't let short-term market fluctuations impact your long-term strategy: - The stock market
is subject to short-term fluctuations that can be driven by various factors, including investor
sentiment and global events. However, it's important to stay focused on your long -term
investment goals and not let short-term market movements impact your strategy.

7. Invest for the long-term: Investing in the BSE and NSE requires a long-term perspective.
Historically, the stock market has provided higher returns over the long-term compared to
other asset classes like bonds or real estate. Therefore, it's important to have a long-term
investment horizon when investing in the stock market.

8. Use dollar-cost averaging: One way to manage risk is to use dollar-cost averaging. This
means investing a fixed amount of money at regular intervals, regardless of the market
conditions. This strategy can help to reduce the impact of market volatility on your portfolio.

9. Monitor macroeconomic conditions: Macroeconomic conditions such as inflation, interest

rates, and GDP growth can impact the performance of the stock market. Keep an eye on these
indicators and adjust your portfolio accordingly.

10. Keep a balanced portfolio: A balanced portfolio that includes a mix of equities, fixed-
income securities, and other assets can help to reduce risk and provide a more stable return.
Consider investing in exchange-traded funds (ETFs) or mutual funds to achieve a diversified
portfolio.

11. Stay updated on company news: Stay informed about the companies you're invested in,
including their financial performance, management changes, and regulatory issues. This
information can help you make informed investment decisions.

12. Stay disciplined: Discipline is critical when investing in the stock market. Avoid the
temptation to buy or sell based on short-term market movements or emotions. Stick to your
investment strategy and avoid making impulsive decisions.
In summary, investing in the BSE and NSE requires a long-term perspective and a disciplined
approach, like using the dollar-cost averaging, monitor macroeconomic conditions, keeping a
balanced portfolio, staying updated on company news, and staying disciplined to manage risk
and maximize returns, even though BSE and NSE provide you with attractive long-term
returns but it comes with inherent risk tagged along with it therefore its important to diversify
your portfolio and to consider the risks involved in it and doing the research and keeping a
check on your investments i.e. monitoring your investments and seeking a professional
advices is also important.

5.3 Outcome of the study: -

In terms of risk, both NSE and BSE are subject to market risk, which is the risk that the
overall market will decline, affecting the prices of all stocks traded on the exchange.
However, the risk may vary between individual stocks and sectors listed on the exchanges.
Therefore, it is important to diversify investments across sectors and stocks to minimize risk.

In terms of return, historical data suggests that the NSE has performed better than the BSE in
terms of both overall returns and average returns. However, it is important to note that past
performance is not necessarily indicative of future results, and the future performance of the
exchange may vary depending on various factors such as market conditions, economic
policies, and geopolitical risks.

In addition to the risk and return, other factors may influence an investor’s decision to invest
in NSE and BSE including trading fees, liquidity, regulatory environment and access to
information and research. Overall, a comparative study of NSE and BSE with special
reference to risk and return can provide useful insights for investors and analysts. However, it
is important to conduct a thorough analysis of the various factors that may influence
investment decisions before making any investment decision.

The NSE and BSE are the two major stock exchanges in India. Comparative study of NSE
and BSE can provide valuable insights for investors and analysts. However, it is important to
conduct a thorough analysis of the various factors that may influence an investment decision
before making any investment decision.

5.4 Conclusion
Indian stock market now grown into a great material with a lot of qualitative inputs and
emphasis on investor protection and disclosure norms. The market has become automated,
transparent and self-driven. It has integrated with global markets, with Indian companies
seeking listing on foreign capital markets exchange, off shore investments coming to India
and foreign funds floating their schemes and thus bringing expertise in to our markets. India
has achieved the distinction of possessing the largest population of investors next to the U.K.,
perhaps ours is the country to have the largest number of listed companies with around
several equity fund management avenues and National Fund managers most of them
automated. India now has world class regulatory system in place. Thus, at the dawn of the
new millennium, the equity funds market has increased the wealth of Indian companies and
investors. No doubt strong economic recovery, upturn in demand, improved market structure,
and other measures have also been the contributory driving forces. Even though Covid
pandemic has fall in India stock market, it recovered with huge hikes along with the
economic recovery of the nation, and also the equity of funds have increased the wealth of
the companies and the investors as well effecting it in a good way during tough times like
Covid and has been contributory to the Indian stock market.

5.5 BIBLIOGRAPHY
BOOKS/JOUNALS

• Anju balan (2013), Indian stock market- review of literature, TRANS Asian journal of
marketing and management research.

• Avijan Datta, gautham bandopadhyay, prediction of stock performance in the Indian stock
market using logistic regression, international journal of business and information.

• Gangan deep sharma &B. S Bodla, Inter linkages among stock market of south Asia, Asia
Pacific journal of business administration.

• Alok kumar Mishra, stock market and foreign exchange market in india: are they related?
South Asia economic journal.

• Vivek rajput & sarika bobde, stock market predictions using hybrid approach, international
journal of computer science and mobile computing.

• Vanita tripathi & shruthi sethi, integration of Indian stock market with world stock markets,
Asian journal of business and accounting.

• Marcia oli sigao, effects of temperature on stock market indices: a study on BSE & NSE in
India, international journal of economic research.

5.6 WEBSITES:

• [Link]

• [Link]

• [Link]