Authors : R. Rajesh Ramkumar, M. Selvam, M. Raja, K. Lingaraja and V. Vasanth
Abstract: The sectoral analysis is typically employed by investors who plan to select better stocks to invest. Investors normally identify the most promising sectors and review the financial performance of companies within the sector to determine which individual stock would provide better returns and purchase such stocks ultimately. The study of sectoral efficiency could provide useful input to the investors to identify the efficient sectors and to channel the available resources into the profitable sectors. This study tested the efficiency of two major stock exchanges, namely BSE and NSE sectoral indices by using daily share price returns. This study measured the random distribution and weak form efficiency in BSE and NSE sectoral indices. The analysis consisted of descriptive statistics, runs and autocorrelation test. The runs test indicated that the market did not follow random distribution.
R. Rajesh Ramkumar, M. Selvam, M. Raja, K. Lingaraja and V. Vasanth, 2015. Efficiency of Sectoral Indices: A Comparative Study on BSE and NSE Ltd.. International Business Management, 9: 258-266.