Acknowledgement. I am extremely thankful to Mr.D.Shyjan, Lecturer in the Department, for his timely help at various stages of the study.

Transcription

1 Acknowledgement I express my heartfelt thanks to my supervisor Dr.C.Krishnan, Selection Grade Lecturer, Government College, Kodencherry, Calicut, for invaluable advice, kind help, and constant and whole-hearted encouragement at each stage of my work. My profound gratitude is also due to Dr. K.P. Mani, Professor, John Mathai Centre, Thrissur, who has been inspiring and motivating throughout. I am thoroughly obliged to him for his constant encouragement, critical comments and valuable suggestions. I am grateful to Dr.U.T. Damayanthi, Professor and Head of the Department, Dr. Laxmidevi and Dr. Kutttykrisnan Nambiar, former Heads of the Department, for their encouragement and support. I am extremely thankful to Mr.D.Shyjan, Lecturer in the Department, for his timely help at various stages of the study. My sincere thanks to Dr.K.X.Joseph, Dr.D. Retnaraj and Dr.P. Kareem, Faculty members of the Department, for their constant encouragement. My profound gratitude to all the faculty members of the Department, for their timely assistance and encouragement throughout my research work. I duly acknowledge the encouragement and support by the research scholars in the department, and all my colleagues and friends. I thank my friends in stock market and the management of broking firms who helped me with valuable data in time. My thanks and gratitude to Dr. Susan Thomas and Dr.R. Nagaraj, Faculty members of IGDR, Mumbai, J.R Varma, Ajay pandey and Ramesh Gupta, Professors of IIM, Ahemedabad, Mr.Hariharan, Manager of SEBI, Bombay, Dr. Suresh Babu, Assistant Professor, IIT, Madras, and Mr.Saji Cheriyan, Manager, Bombay Stock Exchange, for their valuable suggestions and all the help. I extent my thanks to the librarians of John Mathai Centre, Trichur, CDS, Trivandrum, IIM in Calicut, Bangalore and Ahemadabad, BSE, NSE, SEBI and UTI Capital Markets in

2 Bombay, JNU, IPFP and IEG in Delhi, IFMR and IIT in Madras, IISc and ISEC in Bangalore and University of Cochin. My thanks to the Chairmen of Geojit Securities,Cochin, JRG Securities,Cochin Share Wealth Securities, Thrissur, and Equity Intelligence, Cochin for sparing their time and giving valuable inputs. I am thankful to Dr.Jeromy, Research Officer, RBI, Cochin, for his valuable help. I acknowledge with thanks the University Grants Commission for the award of Teacher Fellowship during the tenure of this work. LIST OF TABLES Sl Table Title Flow of funds based indicators of financial development in India Page Trends in gross domestic saving Saving and investment Disbursement of financial institutions Resource mobilised by mutual funds as a percentage of GDP Assistance sanctioned by all financial institutions Capital issues by public limited companies Resource mobilisation through private placement Sector- wise domestic savings Sector -wise gross capital formation Market design in Indian securities market 1992 and Resource mobilisation from the primary market New capital issues by non-government public limited companies ( to ) Resource mobilisation by mutual funds Pattern of growth of stock exchanges

3 Stock market development in India Trends in Bombay stock exchange Trends in National stock exchange Growth and distribution of turnover on stock exchanges Capital from abroad-adrs and GDRs Trends in FII investment Stock market development-international comparison Growth of share owing population in India Reduction in transaction cost in India and 1999 The growth of Indian stock market - select indicators Market capitalisation ratio Value traded ratio Turnover ratio Volatility of sensex at BSE Sindex Behaviour of economic indicators and their suggestive impact on share market Inflation rate of whole sale price index Savings of house hold sector in financial assets Disinvestment in public sector units Financial depth Foreign exchange reserves, rupee dollar exchange rate and openness Exponential growth rate of real GDP with dummy Unit root test First difference Second difference Co-integrated regression results Financial highlights of Reliance Industries Ltd Financial highlights of Larsen and Turbo Ltd

4 Bonus and stock split of Infosys Ltd Financial highlights of Infosys Ltd Financial highlights of Wipro Ltd Financial highlights of Hidustan Lever Ltd Financial highlights of ITC Ltd Financial highlights of Ranbaxy Ltd Financial highlights of Dr. Reddy Lab. Ltd Financial highlights of HDFC bank Ltd Financial highlights of SBI Ltd Goldman Sach s report 331 LIST OF FIGURES Sl. Figur e Title Line chart Bullish trend Bearish trend Bar chart Japanese candle sticks Flag formation Pennant formation Representation of Elliot wave theory 91 Page The classification of market efficiency in EMH The Markovitz model optimal portfolio The share of BSE, NSE and regional stock exchanges in the total turnover Reduction in transaction cost in India (1994 and 1999) Market capitalisation ratio from to Value traded ratio from to Turnover ratio from to Volatility of sensex at BSE

5 Sindex for the year to Trends in bank rate Cash reserve ratio Financial depth from to LIST OF ABBREVIATIONS ADR : American Depository Receipt AMC : Asset Management Company BOLT : Bombay On Line Trading BSE : Bombay Stock Exchange CAPM : Capital Asset Pricing Model CCI : Controller of Capital Issues CDSL : Central Depository Services Limited ECBs : Euro currency Bonds ELOB : Electronic Limit Order Book EMH : Efficient Market Hypothesis FIIs : Foreign Institutional Investors FR : Finance Ratio GDCF : Gross Domestic Capital Formation GDR : Global Depository Receipt IPO : Initial Public Offering MCR : Market Capitalisation Ratio NASDAQ : National Association of Security Dealers Automated Quotations NCAER : National Council of Applied Economic Research NIR : New Issue Ratio NSCC : National Securities Clearing Corporation NSDL : National Securities Depository Limited

6 NSE : National Stock Exchange NYSE : New York Stock Exchange OTCEI : Over the Counter Exchange of India PSU : Public Sector Undertaking SEBI : Securities and Exchange Board of India TOR : Turnover Ratio UTI : Unit Trust of India VTR : Value Traded Ratio