A Study of Nse with Nasdaq
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A Study of NSE with NASDAQ
Financial Reporting and Analysis
Section F - Group 6
Table of Contents
1. Abstract3 2. Objective3 3. Literature Review4 4. Research Methodology4 5.1 Data5 5.2 Data Analysis6 5. Key Findings14 6. Conclusion22 7. References22
1. Abstract
This paper aims to do a comparative study on the National Stock Exchange (NSE) with NASDAQ. It aims at analysing the short-term as well as the long-term relationships between the Indian and American markets. The data being used is the previous three year’s data (Jan 1, 2009 to Dec 31, 2011). It analyses the various reasons which can cause volatility in the share markets and also take specific instances over the past 3 years data of both NSE and NASDAQ to demonstrate it.
2. Objective
The stock market has gained a lot of prominence over the last 2 decades. Globalization and liberalization has completely changed the economic scenario of the entire world. The Indian stock exchange holds an important position not only in Asia but also in the entire world. One of the oldest stock exchanges in the world is Bombay Stock Exchange (BSE). National Stock Exchange (NSE) is also one of the oldest and fastest growing stock exchanges in the world. After the opening up of Indian economy to the world, it has been on the rise continuously. Today any global issue which causes volatility in the global markets is reflected in the Indian markets as well. There are five alternate postulates behind the increased linkages among stock markets: a) Deregulation of financial markets b) Improvements in the flow of information c) Reduction in transaction costs d) Gains available from international diversification of investment portfolios e) Evidence of the existence of stock market leaders and followers [Mukhopadhyay,2009]
The information revolution has entirely transformed the scene today. Investors can keep a real time check on the data and
A Study of NSE with NASDAQ
Financial Reporting and Analysis
Section F - Group 6
Table of Contents
1. Abstract3 2. Objective3 3. Literature Review4 4. Research Methodology4 5.1 Data5 5.2 Data Analysis6 5. Key Findings14 6. Conclusion22 7. References22
1. Abstract
This paper aims to do a comparative study on the National Stock Exchange (NSE) with NASDAQ. It aims at analysing the short-term as well as the long-term relationships between the Indian and American markets. The data being used is the previous three year’s data (Jan 1, 2009 to Dec 31, 2011). It analyses the various reasons which can cause volatility in the share markets and also take specific instances over the past 3 years data of both NSE and NASDAQ to demonstrate it.
2. Objective
The stock market has gained a lot of prominence over the last 2 decades. Globalization and liberalization has completely changed the economic scenario of the entire world. The Indian stock exchange holds an important position not only in Asia but also in the entire world. One of the oldest stock exchanges in the world is Bombay Stock Exchange (BSE). National Stock Exchange (NSE) is also one of the oldest and fastest growing stock exchanges in the world. After the opening up of Indian economy to the world, it has been on the rise continuously. Today any global issue which causes volatility in the global markets is reflected in the Indian markets as well. There are five alternate postulates behind the increased linkages among stock markets: a) Deregulation of financial markets b) Improvements in the flow of information c) Reduction in transaction costs d) Gains available from international diversification of investment portfolios e) Evidence of the existence of stock market leaders and followers [Mukhopadhyay,2009]
The information revolution has entirely transformed the scene today. Investors can keep a real time check on the data and