Department of Commerce and Financial Studies, Bharathidasan University, Tiruchirappalli, Tamil Nadu.
An efficient and integrated capital market is an important infrastructure that facilitates capital formation. The efficiency with which the capital formation is carried out depends on the efficiency of the capital markets and financial institutions. A capital market is said to be efficient with respect to an information item if the prices of securities fully impound the returns implications of that item. The present study has empirically examined the informational efficiency of Indian capital market with regard to quarterly earnings released by the automobile sector companies in the semi-strong form of EMH. The study found that the Indian Capital market is near efficient in the semi-strong form of EMH, which can be used by the investors to make abnormal returns.
