Group members

1. Tanisha Jain -A022

2. Harsheeta Lakhani -A032

3. Vency Morbia -A036

Abstract

Globally, Indian Stock Market holds a foremost place in the world's economy
with advanced technologies, also when it comes to comparison of the same
with the international markets. Various factors affecting the stock markets,
globally or individually are trade barriers or requirements in regulations
which are applied differently on different stock exchanges all over the world.
India’s Stock exchange comprises both Bombay stock exchange (BSE) and
National stock exchange (NSE). When it comes to indices, BSE is the oldest,
with a major index as Sensex and National Stock Exchange is the one with
far better advancement and technologies with major index NIFTY 50. This
research analysis is based on two parts which are quantitative and qualitative,
where the Stock exchange of three (3) countries: India: National stock
exchange (NSE); United States of America: New York stock exchange
(NYSE); China: Shanghai stock exchange (Shanghai composite), are taken in
consideration with their index are compared thereafter. The stock market is
experiencing heightened activities and is increasingly gaining significance. In
the current context of globalization and the subsequent integration of the
global markets this paper is capturing the trends, similarities and patterns in
the activities and movements with comparison of Indian stock exchange to
international counterparts. The time period has been divided into various age
groups to test the correlation between the different exchanges to prove that
the Indian markets have become more unified with its global counterparts. In
our research paper there is a comparison among the major stock exchanges in
terms of both qualitative and quantitative terms. The data for this study was
collected from 100 respondents by an online survey using questionnaires and
a few research papers.

Key words: Indian stock market, international stock market, Bombay stock
exchange, National stock exchange. New York stock exchange, Shanghai
Stock Exchange and comparison.

Introduction

A market parameter of any country’s economy is its stock market. It bridges

the gap between acquiring funds from the interested investors and thus, the
same is employed for the sight of commercial growth which successively
leads to corporate growth. The index is an indicator as a proxy to determine
the growth level over the period of the years. Ordinarily, stock market indices
show uncertainties as regards to their movement in the price fluctuation along
with the price of the script which is working under the market condition i.e.
demand and supply factors. As long as the incursion of investment is at a
huge extent, while showing the upward trend the stock market indices
respond positively. As far as liberalization is concerned, the stock market is
one of the most indispensable components, as it grants the companies an
access to capital in exchange for providing investors a segment of possession
in their company.

*Henceforth, when we mention the Indian stock market, we are referring

mainly to the National Stock Exchange (NSE).

Indian stock exchange

Worldwide Indian markets are growing rapidly and are at the 11th position
among the others. Indian stock exchange is considered prime when
discussing various stock exchanges where International business are
popularly growing. In this research paper various international stock
exchanges with their major index are compared to that of Indian Stock
Exchange. Focusing on the Indian stock market, most of the trading in the
Indian Stock Market takes place on its two stock exchanges: the Bombay
Stock Exchange (BSE) and the National Stock Exchange (NSE). The Indian
stock exchanges hold a place of prominence not only in Asia but also at the
global stage. The National Stock Exchange (NSE) is among the best in terms
of sophistication and advancement of technology.

The Indian stock exchange scene extremely picked up once the gap of the
economy within the early nineties. The full nineties were wont to experiment
associated with fine tuning an economical and effective system. The ‘badla’
system was stopped to regulate excess volatility whereas the derivatives
phase started as late as 2000. The company governance rules were step by
step placed in situ that initiated the method of delivery of the listed firms at a
standardized level. Exchanges are now crossing national boundaries to extend
their service areas and this has led to cross-border integration. Also,
exchanges have begun to supply cross-border commerce to facilitate overseas
investment choices for investors. This has solely exaggerated the
attractiveness of the exchange for investors however it attracts additional
volume. Exchanges often solicit corporations outside their range and
encourage them to list their companies on their exchange and world
competition has placed pressure on corporations to hunt capital outside their
home country. The Indian stock market is the world' third largest stock
market on the premise of a capitalist base and incorporates a collective pool
of twenty million investors. There are over 9,000 firms listed on the stock
exchanges of the country. National Stock Exchange, a more modern
institution that came into existence in 1992, is the largest and most advanced
stock market in India and is additionally the third biggest stock exchange in
Asia in terms of transactions. it's among the five biggest stock exchanges
within the world in terms of transaction volume.

New York stock exchange

The New York Stock Exchange (sometimes stated as "The Big Board'') offers
a method for shoppers and dealers to change shares of stock in companies
registered for public buying and selling. The NYSE is open for buying and
selling Monday to Friday from 9:30 am – 4:00 pm ET, aside from vacations
declared through the Exchange in advance.

The NYSE trades in a non-stop public sale format, wherein buyers can
execute stock transactions on behalf of investors. They will acquire round the
ideal publish wherein a consultant broker, who's hired through a NYSE
member firm (that is, he/she isn't an worker of the New York Stock
Exchange), acts as an auctioneer in an open outcry public sale marketplace
surroundings to convey shoppers and dealers collectively and to control the
real public sale. They do on occasion (about 10% of the time) facilitate the
trades through committing their very own capital and as a depend of route
disseminate statistics to the gang that facilitates to convey shoppers and
dealers collectively. The public sale procedure moved closer to automation in
1995 via using wi-fi handheld computers (HHC). The device enabled buyers
to get hold of and execute orders electronically through wi-fi transmission.
On September 25, 1995, NYSE member Michael Einersen, who designed and
advanced this device, completed a thousand stocks of IBM via this HHC
finishing a 203-yr procedure of paper transactions and ushering in a
generation of automatic buying and selling.

As of January 24, 2007, all NYSE stocks may be traded through its digital
hybrid market (besides for a small institution of very luxurious shares).
Customers can now ship orders for instant digital execution, or direction
orders to the ground for trade in the public sale market. In the primary 3
months of 2007, 82% of all order quantity became introduced to the ground
electronically. NYSE works with US regulators consisting of the SEC and
CFTC to coordinate threat control measures in the digital buying and selling
surroundings via the implementation of mechanisms like circuit breakers and
liquidity replenishment points.

Following the Black Monday market crash in 1987, NYSE imposed buying
and selling curbs to lessen market volatility and huge panic sell-offs.
Following the 2011 rule change, on the begin of every buying and selling day,
the NYSE units 3 circuit breaker tiers at tiers of 7% (Level 1), 13% (Level 2),
and 20% (Level three) of the common final rate of the S&P 500 for the
previous buying and selling day. Level 1 and Level 2 declines bring about a
15-minute buying and selling halt except they arise after 3:25 pm, whilst no
buying and selling halts apply. A Level three decline consequence in buying
and selling being suspended for the rest of the day. The largest one-day
decline in the S&P 500 since 1987 turned into the 11.98% drop on March 16,
2020.

In the mid-1960s, the NYSE Composite Index (NYSE: NYA) was created,
with a base fee of 50 factors similar to the 1965 every year. This was
completed to mirror the value of all shares buying and selling on the change
rather than simply the 30 shares protected in the Dow Jones Industrial
Average. To increase the profile of the composite index, in 2003, the NYSE
set its new base value of 5,000 points, the same as the 2002 every year close.
Its close at the end of 2013 was 10,400.32.

Shanghai Stock exchange

The Shanghai Stock Exchange (SSE) is a stock exchange primarily based

totally in the metropolis of Shanghai, China. It is one of the 3 stock
exchanges running independently in mainland China, the others being the
Beijing Stock Exchange and the Shenzhen Stock Exchange. The Shanghai
Stock Exchange is the world's third biggest inventory marketplace through
marketplace capitalization at US$7.62 trillion as of July 2021. It is likewise
Asia's largest inventory change. Unlike the Hong Kong Stock Exchange, the
Shanghai Stock Exchange remains now no longer totally open to overseas
buyers and regularly laid low with the choices of the vital government,
because of capital account controls exercised through the Chinese mainland
authorities.

In 1891, Shanghai based China's first change system. The current stock
exchange was re-established on November 26, 1990, and turned into in
operation on December 19 of the same year. It is a non-income company
immediately administered through the China Securities Regulatory
Commission (CSRC)

The SSE Composite (additionally referred to as Shanghai Composite) Index

is the maximum normally used indicator to mirror SSE's market performance.
Constituents for the SSE Composite Index are all indexed shares (A stocks
and B stocks) on the Shanghai Stock Exchange. The Base Day for the SSE
Composite Index is December 19, 1990. The Base Period is the full market
capitalization of all shares of that day. The Base Value is 100. The index was
released on July 15, 1991. At the end of 2006, the index reached 2,675.47.
Relationship between the Indian and the international stock exchange

This examination relates to comparative evaluation of the Indian Stock

Market with recognition to various worldwide counterparts. Exchanges are
actually crossing countrywide limitations to increase their provider areas and
this has brought about cross-border integration. Also, exchanges have all
started to provide cross-border buying and selling to facilitate foreign places
funding alternatives for investors. This not only multiplied the enchantment
of the exchange but additionally drew greater volume.

Exchanges often solicit agencies out of doors of their domestic territory and
inspire them to listen to their change and worldwide opposition has
positioned stress on companies who are trying to find capital out of doors
apart from their domestic country. The Indian stock market place is the sector
of 0.33, biggest inventory marketplace on the idea of investor base and has a
collective pool of approximately 20 million investors. There are over 9,000
agencies indexed at the inventory exchanges of the country. The Bombay
Stock Exchange, installed in 1875, is the oldest in Asia.

National Stock Exchange, a greater latest status quo which got here into life
in 1992, is the most important and most superior inventory marketplace in
India and is likewise the third largest inventory alternative in Asia in phrases
of transactions. It has many of the 5 largest inventory exchanges inside the
global in phrases of transactions volume.

Presently, the fluctuations in the Indian marketplace are attributed closely to

move border capital flows in the shape of FDI, FII and to respond to the
Indian marketplace to international marketplace cues. In this context,
understanding the connection and impact of diverse exchanges on every
different exchange could be very important. This study compares
international exchanges which can be from distinct geo politico-
socio-monetary areas.
With the cross-border actions of capital like in no way earlier than withinside
the shape of FDI and FII, coupled with the easing of restrictions bringing
numerous inventory exchanges at par in phrases of gadget and regulations, it
is assumed moderately that a selected stock exchange could have a few effect
on distinct exchanges.

Literature Review

HARSHEETA LAKHANI

1. Comparative analysis of Indian stock market with international

markets: Debjiban Mukherjee’s research study covers New York
Exchange (NYSE), Hong Kong Stock exchange (HSE), Tokyo Stock
exchange (TSE), Russian Stock exchange (RSE), Korean Stock
exchange (KSE) from various socio politico-economic backgrounds.
Both the Bombay Stock exchange (BSE) and the National Stock
Exchange of Indian Limited (NSE) have been used in the study as a
part of the Indian Stock Market.The time period has been divided into
various eras to test the correlation. it is clearly found that the stock
markets do impact each other, more so in recent times, i.e. post-2000.
This has been due to the fact that ‘cross holdings’ are increasingly
becoming common wherein the geographical barrier is dissolving with
respect to investing.

REWORDED- Debijan Mukherjee’s research covers New York

Exchange (NYSE), Hong Kong Stock exchange (HSE), Tokyo Stock
exchange (TSE), Russian Stock exchange (RSE), Korean Stock
exchange (KSE) from diverse socio politico-financial backgrounds.
Both the Bombay Stock exchange (BSE) and the National Stock
Exchange of Indian Limited (NSE) were used in the look at as part of
the Indian Stock Market.The term has been divided into diverse eras to
check the correlation. it's by far virtually determined that the stock
markets do affect each other, greater so in recent times, i.e. post-2000.
This has been because of the reality that ‘cross holdings’ are more and
 more turning into an unusual place in which the geographical barrier is
dissolving with appreciation to investing.

2. Comparative analysis of indian stock market and major index with

global stock exchange and their major index: Ravleen Kaur in 2017
conducted research and compared major world’s stock exchanges in
terms of both qualitative and quantitative terms. The Analysis is done
in two parts that are quantitative and qualitative where the Stock
exchange of various countries are taken with their index and are
compared thereafter. Mainly with India stock exchanges of USA, Japan
, China and Kong were used.It is clear from comparative analysis that
Sensex is highly correlated with Hang Seng i.e. 93.14% followed by
shanghai Composite with 70.83%, then Dow Jones with 68.68% and
least with Nikkei 225 with 58.57%.Sensex is showing highly positive
correlation with all the indices.

REWORDED- Ravleen Kaur in 2017 performed studies and in

comparison most important world’s stock exchanges in phrases of each
qualitative and quantitative phrase. The Analysis is achieved in
components which might be quantitative and qualitative in which the
Stock exchange of numerous international locations are all in favor of
their index and are in comparison thereafter. Mainly with India stock
exchanges of USA, Japan , China and Kong had been used.It is obvious
from comparative evaluation that Sensex is enormously correlated with
Hang Seng i.e. 93.14% observed by shanghai Composite with 70.83%,
then Dow Jones with 68.68% and least with Nikkei 225 with
58.57%.Sensex is displaying enormously high quality correlation with
all of the indices.

3. Arumugan and Soundararajan (2013) investigated the seasonality

and time varying volatility in the Indian stock markets. The Chi-square
and ANOVA statistical test were applied to obtain the results. The
 study concluded that there was seasonality and volatility in the days of
the week and months of the year.

REWORDED- Investigated the seasonality and time various volatility

withinside the Indian inventory markets. The Chi-rectangular and
ANOVA statistical test have been carried out to achieve the results. The
study concluded that there has been seasonality and volatility
withinside the days of the week and months of the year.

VENCY MORBIA

4. Chander and Kumar (2016) studied the Seasonality Effect in BSE

SENSEX. The secondary data was used from daily closing prices of
BSE SENSEX from 1st April 2005 to 31st March 2015. Descriptive
statistics were used to compile the data. The paper suggested that BSE
SENSEX in India was not free from seasonal anomalies despite
increased use of advanced information technology and numerous
regulatory frameworks.

REWORDED- Studied the Seasonality Effect in BSE SENSEX. The

secondary records turned into use from day by day last fees of BSE
SENSEX from 1st April 2005 to 31st March 2015. Descriptive records
had been used to collect the records. The paper advised that BSE
SENSEX in India turned into now no longer loose from seasonal
anomalies regardless of elevated use of superior data era and severa
regulatory frameworks.

5. Pathak Manish (2013) highlighted the stock market seasonality

effect. The secondary data used in the study were collected from
closing prices of the NSE index during the period from1st april 2002 to
31st March 2012. Kruskal Walis test and one-way ANOVA test were
used to achieve the objective. The result of this study revealed that
there was no seasonality present in the daily and monthly return of the
market.
 REWORDED- Highlighted the stock marketplace seasonality effect.
The secondary information used in the observation had been gathered
from last expenses of the NSE index at some point of the length
from1st april 2002 to 31st March 2012. Kruskal Walis took a look at an
one-manner ANOVA test that had been used to reap the objective. The
end result of this observation discovered that there has been no
seasonality gift in the daily and monthly go back of the marketplace.

6. Rajput et al. (2013) focused on futures trading and its impact on

volatility of the Indian stock market. Bi-Variate E GARCH and Unit
root technique were used to fetch the results. The paper found the
unidirectional relationship between future trading and spot market.
Finally, the study concluded that spot and future markets improved the
risk management and investment decision of the agent.

REWORDED- centered on futures buying and selling and its effect on

volatility of the Indian stock market. Bi-Variate E GARCH and Unit
root method had been used to fetch the results. The paper observed the
unidirectional dating among destiny buying and selling and see market.
Finally, the study concluded that spot and destiny markets stepped
forward the hazard control and funding choice of the agent.

TANISHA JAIN

7. Srinivasa Rao Gangadharan & C.A Yoonus (2011) examined the

impact of the global financial crisis on the level of financial integration
between the US(S&P 500) and Indian stock market (CNX S&P) using
daily returns from March 2005 to November 2010. The study finds that
there is no co -integration between the two indices

REWORDED- Srinivasa Rao Gangadharan & C.A Yoonus (2011)

tested the effect of the worldwide monetary disaster on the extent of
monetary integration among the US(S&P 500) and Indian stock market
(CNX S&P) using each day returns from March 2005 to November
 2010. The examine reveals that there's no co -integration among the 2
indices

8. Kanakaraja mmal & Paulraj (2014) in their study investigated short

run and long run equilibrium relationship between Indian stock market
with USA, China, Singapore and Germany. The data used in the study
was from January 2003 to December 2013. The study shows
co-integration exists among the selected indices and also found that
Indian stock market granger cause on U.S stock market and
bidirectional causality exist between Singapore and Indian Stock
market.

REWORDED- Kanakaraja mmal & Paulraj (2014) in their study

investigated the brief run and longer term equilibrium courting among
Indian stock marketplaces with USA, China, Singapore and Germany.
The information used in the study was from January 2003 to December
2013. The study indicates co-integration exists in most of the selected
indices and additionally determined that Indian stock marketplace
granger cause on U.S stock market and bidirectional causality exist
among Singapore and Indian Stock marketplace.

9. Shivi Khanna (2016) examined the price behavior of Indian stock

market with UK and Japan stock market prior and post global financial
crisis and concluded that during the pre -crisis period both japan and
UK markets are integrated with Indian market, while in post crisis
Indian markets were influenced by UK stock market ,but not by Japan
market.

REWORDED- Shivi Khanna (2016) tested the price conduct of Indian

stock marketplace with UK and Japan stock marketplace previous and
submit international economic disaster and concluded that in the pre
-disaster length each japan and UK markets are incorporated with
Indian marketplace, even as in submit disaster Indian markets had been
 encouraged by UK stock marketplace ,however now no longer by Japan
stock marketplace.

10. Sukhminder singh and Deepak Kumar in 2018 conducted a

research on stock markets of India , USA , China , Taiwan , Japan ,
HongKong , South Korea and United Kingdom during the post global
financial crisis period from 31 st January 2014 to 31 st January 2018 .
The results of this study strongly support the view that there is a
substantial integration between Indian and International financial
markets.

REWORDED- Sukhminder singh and Deepak Kumar in 2018

carried out a study on stock markets of India , USA , China , Taiwan ,
Japan , HongKong , South Korea and United Kingdom during the
published worldwide economic disaster period from 31st January 2014
to 31 st January 2018 . The outcomes of this study strongly guide the
view that there may be a widespread integration among Indian and
International economic markets.

Objectives

1. To compare between the Indian stock market and the international

stock market.
2. To understand the international stock market.
3. To predict the international stock market.

Research Methodology

Data collection was conducted in February 2022. The research was

quantitative in nature and primary data was gathered with a sample size of
102, whose responses were recorded using a questionnaire. Random sampling
method has been used to collect the data. The respondents were Indian
citizens out of which 73.5% were students, 14.7% were employees and
11.8% were business mens respondents. Secondary data was collected from
websites and related research papers.
Each questionnaire response was then inserted into an electronic spreadsheet
to compile all of the responses, culminating in a raw database for the
research. Bar charts and pie charts were created to help understand the trend
and pattern of the obtained data.

The collected information was then evaluated with a hypothesis using the
Chi-square test to analyze the independent/dependent relationship between
the two attributes by determining and comparing observed frequencies after
collecting the sample data and creating sample statistics as well as expected
frequencies.

Key Findings

H01: Investors' interest towards the international stock market is independent

of age .

H1: Investors' interest towards the international stock market is dependent on

age.

AGE

Value Observed N Expected N Residual

18-25 78 34 44
26-40 7 34 -27
40 & above 17 34 -17
TOTAL 102
 INVESTORS INTERESTS TOWARDS VARIOUS INTERNATIONAL
STOCK MARKETS

Value Observed N Expected N Residual

India (NSE) 93 34 59
USA (NYSE) 7 34 -27
China (SHG) 2 34 -32
Total 102

TEST STATISTICS

Chi-square DF Asymp.sig
Age 86.882 2 0.0001
Investors 153.941 2 0.0001
interest towards
various
international
stock markets

Results: For Chi-square test to have a significant relation between two

variables, the p-value should be less than or equal to 0.05. From the above
test, it can be seen that the p-value is less than 0.05, i.e., 0.0001. This
indicates that the null hypothesis H01 is rejected and the alternative
hypothesis H1 is accepted for the above chi-square test. These results show
that Investors interest towards the international stock market is dependent on
age.
H02: Investors preference towards the international stock market is
independent from profession

H2: Investors preference towards the international stock market is dependent

from profession

PROFESSION

Value Observed N Expected N Residual

Student 75 34 41
Employee 15 34 -19
Businessman 12 34 -22
Total 102

INVESTORS INTERESTS TOWARDS VARIOUS INTERNATIONAL

STOCK MARKETS

Value Observed N Expected N Residual

India (NSE) 93 34 59
USA (NYSE) 7 34 -27
China (SHG) 2 34 -32
Total 102
 TEST STATISTICS

Chi-square DF Asymp.sig
Profession 74.294 2 0.0001
Investors 153.941 2 0.0001
interest towards
various
international
stock markets

Results: For Chi-square test to have a significant relation between two

variables, the p-value should be less than or equal to 0.05. From the above
test, it can be seen that the p-value is less than 0.05, i.e., 0.0001. This
indicates that the null hypothesis H01 is rejected and the alternative
hypothesis H1 is accepted for the above chi-square test. These results show
that Investors interest towards the international stock market is dependent on
profession.

Limitation

1. The sample size for this study was very small.

2. For the chi square test only two variables have been used to find the
significant relationship with investors' interests towards the
international stock market, more variables could have been used for the
same.

Conclusion

The outcomes of this observation strongly guide the view that there may be a
sizable integration among Indian and International monetary markets. The
observation brings forth a few wonderful conclusions, a lot of which validate
famous beliefs. The goal of the entire studies changed into to try to examine
the numerous inventory exchanges primarily based totally on sure parameters
in an effort to apprehend the effect of integration of the monetary
international market at the numerous entities inside it specifically in the
context of globalization and multiplied hobby in the capital markets fuelled
by way of means of surging growth. NSE has witnessed an extra fluctuation
which has been indicated via means of a totally excessive Coefficient of
version as compared to different pick out indices. NSE, the Indian benchmark
index, has proven sturdy affiliation with China, New York and Taiwan’s
Composite Index. The observation is famous that there may be a negative
integration of NSE with SSE, LSE, TSE, ASE, HSE, and NASDAQ .Indian
stock market exhibited sturdy high-quality correlation and best charge
correlation with worldwide stock markets. In Asia pacific region, while as
compared to Hong Kong, correlation of the Indian marketplace with
worldwide markets isn't always so attractive. The observation concluded that
the Indian stock marketplace, which has related with stock markets of all of
the countries, is globally incorporated over the following 10-15 years, desires
to transport in the direction of a much extra incorporated worldwide
monetary international and coverage makers in India want to reconsider the
framework for such integration.

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