TESTING WEAK FORM EFFICIENCY OF INDIAN STOCK MARKET – AN EMPIRICAL STUDY ON NSE

The Efficiency Market Hypothesis (E M H) has been consented as one of the cornerstones of modern financial economics. The term “efficiency market” in financial literature in 1965 as one in which security prices fully reflect all available information .The market is efficient if the reaction of market prices to new information should be instantaneous and unbiased. Like its foreign counterparts, Indian stock market is also affected badly by the financial crisis of recent times. Last five years have seen several crashes in the stock market followed by unprecedented volatility. Millions of the investors’ money have wiped out in seconds. In this context, the issues of efficiency of the Indian stock market have again become relevant at all levels. With this backdrop, the present study attempts to reinvestigate the true level of information efficiency of Indian stock exchanges, with a special reference to National Stock Exchange. The paper is to empirically study on testing weak form efficiency of Indian stock market – with special reference to NSE. The objective of the study is to check whether NSE is efficient in weak form of market. The study is analytical in nature and used secondary data analysis to attain its objectives. The secondary data is collected from the official website if nseindia.com covering the last fourteen five years from January 2000 to December 20132008-09 to 2012-13. Various other reports like magazines, journals, published books and official websites are also referred to for the present study. The statistical techniques applied for data analysis in the 2 present study are run and auto correlation tests. The results depicts that NSE is inefficient in weak form of market