*Professor, Department of Commerce and Management. Kakatiya University, Warangal
**Research Scholar, Department of Commerce and Management, Rayalaseema University, Kurnool
***Assistant Professor, Kamala Institute of Technology and Science, Huzurabad, Karimnagar
Online published on 24 October, 2019.
Capital Markets facilitate trading of securities executing liquidity and pricing the securities. The capital market efficiency is the ability of the securities reflecting and incorporating all the relevant information instantaneously and unbiased. Three descriptions of capital market efficiency can be discerned basing on the information available. The weak form of efficiency is referred to as the random walk hypothesis. Prices could be greater than or less than the true value ie: there is an like chance that the share prices are either undervalued or overvalued at any given time and the variations and no correlation exists compared to any observable variable. In the present study, randomness of share price has been tested for State Bank of India. The share prices on every Fortnight Monday have been taken from internet between the dates 30th March 2017 to 2nd April 2019 from BSE index. The sample run test has been applied. It has been found the arrangement of change in share price was random.
Capital market, capital market efficiency, random walk, share price, BSE index
