A study on stock market return, volatility and correlation analysis among Indian & Asian Stock Markets

The stock market is witnessing keen activities and is gradually more gaining Importance. Post the1997 East Asian disaster which had caused significant reduction in asset prices and stock markets in quite a small number of Asian countries, these economies bang back. These economies maintained high interest rates thereby creation them attractive to foreign investors. As a result these economies customary a large inflow of funds and experienced a theatrical run-up in asset prices. As a part of market amalgamation, the capital market of India is no longer cut off from international economic measures and their stock index travels. This paper finds the correlation of Indian Stock market with four other major Asian economies: Japan, Singapore, Hong Kong and Korea. A weak correlation concludes that the Indian stock markets propose diversification benefits to institutional and international investors. The paper finds non routine feature in the stock return allotment of the five economies of Asia including India. The Indian markets showed facial exterior of platykurtic distribution, the volatility of its daily returns were alike to it other Asian counterparts. A negative skewness of returns, equally in the short and long run indicates attentiveness of these returns towards higher returns and good opening for investment.