SpringerBriefs in Economics

Momentum Trading on the Indian Stock Market

Authors: Chakrabarti, Gagari, Sen, Chitrakalpa

  • A comprehensive, analytical study (instead of being theoretical only) on momentum trading, which seeks to fill the void in the existent literature
  • Links the theory of momentum trading with the financial crisis of 2007-08
  • Provides significant policy-based and theoretical implications
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eBook $39.95
price for USA (gross)
  • ISBN 978-81-322-1127-3
  • Digitally watermarked, DRM-free
  • Included format: EPUB, PDF
  • ebooks can be used on all reading devices
  • Immediate eBook download after purchase
Softcover $49.95
price for USA
  • ISBN 978-81-322-1126-6
  • Free shipping for individuals worldwide
  • Usually dispatched within 3 to 5 business days.
About this book

This study is an exploration of the Indian stock market, focusing on the possible presence of momentum trading. One thing, however, should be noted. While it is true that momentum trading, which tends to generate speculative bubbles, may result in a financial market crash, its nature in contrast might depend on the nature of the economy itself. The study, while exploring the presence and nature of momentum trading on the Indian stock market in recent years, seeks to relate it to significant structural breaks in the Indian or global economy. To be precise, it outlines a potential correlation between the instability in the stock market and the speculative trading on the market, exploring the question of whether it is human psychology that drives financial markets. In the process, the choice of a significant structural break has been obvious: the global financial meltdown of 2007-2008 – a crisis that has often been referred to as the worst ever since the crash of 1929. While analyzing the nature of momentum trading on the Indian stock market with regard to the financial crisis of 2007-08, the study takes into account two major representatives of the market, the BSE (Bombay Stock Index) and NSE (National Stock Index), for the period 2005 to 2012. This study seeks to answer a few important questions. First of all, it tries to unveil the underlying structure of the market. In doing so, it examines the following issues: (i) What was the latent structure of the Indian stock market leading up to the crisis of 2007-08? Does the structure offer insights into designing profitable trading strategies? (ii) Is it possible to construct a profitable portfolio on the Indian stock market? (iii) Is there any profitable trading strategy on the Indian stock market? While exploring these issues, the study delves deeper, breaking the whole period down into two sub-periods, before the crisis of 2008 and after the crisis. The purpose of this division is to determine whether there has been any discernible change in the market structure since the shock.

About the authors

Dr. Gagari Chakrabarti completed her Masters, M.Phil and Doctorate in Economics at the University of Calcutta and is currently working as an Assistant Professor at the prestigious Presidency University in Kolkata, India. Her area of specialization is financial economics and the application of econometrics in financial economics. She has several national and international publications to her credit.


Chitrakalpa Sen is an Assistant Professor in Economics at Auro University, Surat. He completed his Masters in Economics at Calcutta University and his PhD at the West Bengal University of Technology. Dr. Sen’s area of interest is financial economics, econometrics and the non-linear application of econometrics in financial time series. He has presented his works at several national and international conferences and in journals.

Table of contents (4 chapters)

  • Introduction

    Chakrabarti, Gagari (et al.)

    Pages 1-4

  • Trends in Indian Stock Market: Scope for Designing Profitable Trading Rule?

    Chakrabarti, Gagari (et al.)

    Pages 5-53

  • Possible Investment Strategies in Indian Stock Market

    Chakrabarti, Gagari (et al.)

    Pages 55-68

  • Investigation into Optimal Trading Rules in Indian Stock Market

    Chakrabarti, Gagari (et al.)

    Pages 69-110

Buy this book

eBook $39.95
price for USA (gross)
  • ISBN 978-81-322-1127-3
  • Digitally watermarked, DRM-free
  • Included format: EPUB, PDF
  • ebooks can be used on all reading devices
  • Immediate eBook download after purchase
Softcover $49.95
price for USA
  • ISBN 978-81-322-1126-6
  • Free shipping for individuals worldwide
  • Usually dispatched within 3 to 5 business days.
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Bibliographic Information

Bibliographic Information
Book Title
Momentum Trading on the Indian Stock Market
Authors
Series Title
SpringerBriefs in Economics
Copyright
2013
Publisher
Springer India
Copyright Holder
The Author(s)
eBook ISBN
978-81-322-1127-3
DOI
10.1007/978-81-322-1127-3
Softcover ISBN
978-81-322-1126-6
Series ISSN
2191-5504
Edition Number
1
Number of Pages
XV, 110
Number of Illustrations and Tables
58 b/w illustrations
Topics