Volatility of Indian Stock of Indian Stock Market
  • Author(s): Dr. D. Anjaneyulu ; E Sudarshan
  • Paper ID: 1708377
  • Page: 1542-1545
  • Published Date: 10-07-2025
  • Published In: Iconic Research And Engineering Journals
  • Publisher: IRE Journals
  • e-ISSN: 2456-8880
  • Volume/Issue: Volume 8 Issue 10 April-2025
Abstract

The Indian stock market is known for its dynamic nature and susceptibility to volatility caused by various internal and external factors. This study investigates the volatility patterns in the Indian stock market, focusing on benchmark indices such as the BSE Sensex and NSE Nifty. By applying econometric models like GARCH and EGARCH, the research captures the time-varying volatility and its responses to macroeconomic events, global financial shifts, policy changes, and investor sentiment. The period under analysis includes key events such as general elections, budget announcements, global market crashes, and the COVID-19 pandemic. The study also examines the asymmetric nature of volatility, where markets tend to react more strongly to negative news than positive developments. Understanding these patterns is crucial for investors, portfolio managers, and policymakers to make informed decisions, manage risk, and ensure market efficiency. The findings suggest that volatility in the Indian market is influenced not only by domestic factors but also by global events, highlighting the increasing interconnectedness of financial systems. The study concludes with recommendations on strategies to mitigate risks associated with high volatility and foster investor confidence through policy measures and market reforms.

Keywords

Indian stock market, volatility, GARCH, Sensex, Nifty, macroeconomic factors, investor sentiment, market risk, financial modeling, global events

Citations

IRE Journals:
Dr. D. Anjaneyulu , E Sudarshan "Volatility of Indian Stock of Indian Stock Market" Iconic Research And Engineering Journals Volume 8 Issue 10 2025 Page 1542-1545

IEEE:
Dr. D. Anjaneyulu , E Sudarshan "Volatility of Indian Stock of Indian Stock Market" Iconic Research And Engineering Journals, 8(10)