Asian Journal of Research in Business Economics and Management
Year : 2013, Volume : 3, Issue : 11
First page : ( 197) Last page : ( 208)
Online ISSN : 2249-7307.

A Comparative Study on National Stock Exchange of India and Shanghai Stock Exchange of China

Dr. Anbukarasi M.

Assistant Professor, Department of Commerce, Bharathiar University, Coimbatore-641 046

Online published on 7 November, 2013.

Abstract

The Asian stock market grabs a prominent place not only in Asia but also at the global market. In the current globalization era, Asian stock market integration acquires more importance in the work stock market. This paper attempts to compare whether the Indian stock market and Chinese stock market of Asia capture any similarity in price movement, trend, return and volatility. For this purpose, the study covers two indices of Indian and Chinese Stock markets i.e. Standard & Poor's CNX Nifty of National Stock Exchange of India and Shanghai Stock Exchange of Chinese Stock Market. The present study uses monthly data from 2005–06 to 2011–12. The correlation analysis shows the positive relationship between the closing prices of two indices and the Exponential trend line exhibits that S&P CNX Nifty follows the exponential trend. The return and volatility result explains that the return and risk or volatility level is not parallel with each other stock exchanges. It can be concluded that there is no commonality in the movement of closing price of S&P CNX Nifty and SSE 50 indices during the study period.

Top

Keywords

S&P CNX Nifty, SSE 50, Return, Volatility, Exponential Trend.

Top