An impact of ict on the growth of capital market-empirical evidence from Indian stock exchange

The present study investigates the impact of ICT on the growth of the Indian Stock Exchange using a modified version of the Gompertz technology diffusion model introduced by Chow (1983) and accordingly reshuffles the model with ICT development revolve into the independent variable while stock market growth indicators are the dependent variables. Capital markets have turn into extremely unpredictable while the espousal of computer assisted trading strategies as the latter increase short-term price volatility and risks. The study is based on secondary data obtained from BSE and NSE stock exchanges database, MCX India database, Securities and Exchange Commission and websites of World Development Indicators. In the course of analysis, descriptive statistics and regression model has been designed. The empirical results divulge that preferred variables are appreciably affected by information and communications technology more than ever in respect of amplify in the number of stockbrokers, investors and admittance to ICT.