Please use this identifier to cite or link to this item: http://hdl.handle.net/10603/15842
Title: Momentum and contrarian strategies in the Indian stock market an evaluative study
Researcher: Thomas, Asha E
Guide(s): Dilip Kumar, M C
Keywords: Commerce
Momentum
Indian stock market
Upload Date: 12-Feb-2014
University: Mahatma Gandhi University
Completed Date: 2010
Abstract: Stock prices are generally governed by rational inputs and irrationality in newlinethe market can cause only daily, weekly and short run fluctuations. While newlineirrationality takes prices away from its intrinsic value, rationality brings it back. newlineContrarian investment strategy is followed under the assumption that typical herd newlinebehaviour leads to overreaction to information and hence stocks which have gone newlineup recently is over valued or vice versa. By taking the opposite position, contrarian newlineexpects profit when the market turns rational. On the other hand, momentum newlineinvestment strategy is followed by moving along with the tide. Here it is found newlineuseful to follow the crowd and be a part of it. But if market is efficient in pricing, newlinethen both these strategies will fail. newlineThe present study is conducted to test the effectiveness of these two newlineinvestment strategies in the Indian stock market. As a first step to this, the newlineresearcher tested the market efficiency of Indian stock market. Indian Market is newlinefound to be Weak-form inefficient and Strong form efficient. However, the study newlinefound out that momentum and contrarian strategies could not deliver any superior newlinereturns to Indian investors during the study period. Separate analysis was carried newlineout by the researcher to test the efficiency o these tools, when Indian markets were newlineseverely hit by global financial crisis. Interdependency of Indian Stock Market newlinewith other leading emerging markets was also part of the study. The results newlineconfirmed the evidence of significant correlation with these markets. The study is newlineexpected to help Indian investors while taking various investment decisions. newlineKey Words: Market Efficiency, Momentum Strategy, Contrarian Strategy, Interdependency of newlineStock Market, Indian Stock Market, Global Financial Crisis.
Pagination: 211p.
URI: http://hdl.handle.net/10603/15842
Appears in Departments:Department of Commerce and Research Centre

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01_title.pdfAttached File14.91 kBAdobe PDFView/Open
02_declaration.pdf71.57 kBAdobe PDFView/Open
03_certificate.pdf69.98 kBAdobe PDFView/Open
04_acknowledgements.pdf16.8 kBAdobe PDFView/Open
05_abstract.pdf14.53 kBAdobe PDFView/Open
06_preface.pdf14.07 kBAdobe PDFView/Open
07_contents.pdf191.73 kBAdobe PDFView/Open
08_list of tables.pdf223.05 kBAdobe PDFView/Open
09_list of figures.pdf15.53 kBAdobe PDFView/Open
10_abbreviations.pdf89.34 kBAdobe PDFView/Open
11_chapter 1.pdf312.11 kBAdobe PDFView/Open
12_chapter 2.pdf117.83 kBAdobe PDFView/Open
13_chapter 3.pdf342.12 kBAdobe PDFView/Open
14_chapter 4.pdf720.25 kBAdobe PDFView/Open
15_chapter 5.pdf2.42 MBAdobe PDFView/Open
16_chapter 6.pdf1.03 MBAdobe PDFView/Open
17_chapter 7.pdf189.4 kBAdobe PDFView/Open
18_bibliography.pdf441.03 kBAdobe PDFView/Open
19_appendix.pdf6.02 MBAdobe PDFView/Open


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