A study on the performance in national stock exchange (NSE) sectoral indices of India Thappa Sankar1 1Associate Professor, PhD, Department of Management, Rajiv Gandhi University, Rono Hills, Doimukh, Arunachal Pradesh, sankar.thappa@rgu.ac.in Online Published on 12 May, 2023. Abstract The impact of Globalization in an economy of a country is that it attracts a large number of participants from different countries to invest in the capital market. The capital markets help in capital formation for the development of the economy in a country. The capital market is the primary source of capital to carry out various economic activities in a country. Thus the financial health of an economic system depends to a great extent in the capital market. In an economy, capital formation is very important for the development of business environment as well as economic growth. The capital formation takes place through the inflow of investments from various sources. The economy of a country depends on stock market for capital formation in the country. The surplus funds of the public are being channelized through the stock market to meet the need of the industry. This allocation of capital is being used as productive investments resulting economic growth in a country. Capital formation through stock market provides a platform giving win-win situation to both the industry as well as investor. The investors find stock market as an alternative investment avenue which may provide highest return to them. Every stock market has its own index. The market index highlights the movements of stock prices which helps in understanding the sentiments of the particular stock market. This paper has made an attempt to examine the performance of Sectoral Indices of NSE from April 2010 to March 2018. In this study NSE sectoral indices have been used like NSE AUTO, Banking, Energy, FMCG, Financial Services, Information & Technology (I & T), Infrastructure, Media, Metal, Pharmaceutical, Reality Index and NSE Nifty. Descriptive Statistics, Augmented Dicky Fuller Test and GARCH model have been used for all the sectors. In this paper GARCH (1, 1) has been found best one in modeling the volatility of the return series. Top Keywords ADF, ARCH, GARCH, NSE, Stationarity. Top |