*Professor & Dean of Exams,
**Research Scholar,
This paper attempts to draw an inference regarding the efficiency of Indian Stock Market. An Efficient Market is one in which the market price of a security is an unbiased estimate of its intrinsic value. For the purpose of studying the Indian market efficiency, the present study considers the top ten pharmaceutical companies of India. It studies how far the Indian stock market is efficient and reveals the form of efficiency. Efficient Market Hypothesis (EMH) counters the Fundamental Analysis and Technical Analysis. Fundamental Analysts feel that the prices of the shares can be expected with the analysis of certain factors such as Economy, Industry and Company. Technical Analysts believe that the prices of the shares can be predicted as the history repeats. Efficient Market Hypothesis asserts that financial markets are informationally efficient. In consequence of this, one cannot consistently achieve returns in excess of average markets on a risk-adjusted basis, given the information available at the time the investment is made. The present study reveals that the Indian Pharmaceutical Market is efficient in Weak form. The analytical tool used is Runs test.
