*Research Scholar, Department of Economic Administration and Financial Management, University of Rajasthan, Jaipur, Rajasthan
**Assistant Professor, Department of Economic Administration and Financial Management, University of Rajasthan, Jaipur, Rajasthan
***Professor, Department of Economic Administration and Financial Management, University of Rajasthan, Jaipur, Rajasthan
Online published on 13 June, 2013.
Stock prices are changed every day by the market. Buyers and sellers cause prices to change as they decide how valuable each stock is. Basically, share prices change because of supply and demand. If more people want to buy a stock than sell it - the price moves up. Conversely, if more people want to sell a stock, there would be more supply (sellers) than demand (buyers) -the price would start to fall. Volatility is a symptom of a highly liquid stock market. Pricing of securities depends on volatility of each asset. An increase in stock market volatility brings a large stock price change of advances or declines. In this study we calculate the inter-day and intra-day volatility methods to find out presence of the stock market volatility on Indian stock market in Bombay stock exchange. In this paper we use the monthly stock return to analyze the time variation in volatility in the Indian stock market during 2001 to 2011. We also study the factors such as Corporate Leverage, Business condition, computerized trading, Market maker, International linkages that affect volatility.
Volatility, Corporate leverage, computerized trading, Inter-day and intraday volatility, market return, Factors that affect volatility
