Testing the Weak form of Efficiency of Indian Stock Market with Reference to National Stock Exchange

Market efficiency has an effect on the investment strategy of the investors, mutual fund companies, stock brokers, government institution and regulatory agencies. Efficiency of the market depends upon the quick assimilation of new information. In weak form market, current price reflects all the available information obtained in the past prices. Investors and Researchers have been engrossed to the pay attention to the dynamic growth of stock market. Present study researchers examined whether the Indian stock market is weakly efficient or not. This study we check the random walk of the Indian stock market with special reference to NSE. Data for the analysis was collected from January 01st 2017 to December 31st 2022 (5 years). For analysing the data we used three statistical techniques namely Autocorrelation test with lagged, Durbin-Watson test and Runs test. Result shows that the evidence of the weak form efficiency of the Indian stock market. Further we understood that the market is efficient in which the current price does not reflect from the past information. Hence, investors hardly to earn abnormal return from weak form efficiency