The
purpose of this study is to examine how the significant structural
differences between the two stock exchanges have contributed to
variations in observed measures of quality and price volatility. The
important differences between BSE and NSE lie in the ownership
structure, geographic reach, internal control systems and institutional
risk management facilities. The volatility for the indices is measured
from the values of co-efficient of variation and standard deviation of
the returns of the indices. The study period is from April-2001 to
March-2008. One of the main observations from the study is that May 2004
recorded a high volatility of 4.21,4.90,4.32 in NSE for Nifty, Nifty
Junior, CNX 500 respectively and in the case of BSE, it was
3.81,3.90,4.21,4.22 for SENSEX, BSE100,BSE200,BSE500 respectively. But
for CNX 200, the volatility was high in the month of July 2005[7.12]
because in the above period, the CNX 200 index was abolished and the CNX
Midcap was introduced with the same set of stocks as in CNX 200. |