As we know to earn money, someone has to invest money. Thus, investment decision plays a very major role in individual life and corporate world. Investment decisions are based on risk factor. Hence, in consideration to risk minimization investment in Index will be a better option as compare to individual share. Volatility is a symptom of a highly liquid stock market and pricing of securities depends on volatility of each asset. An increase in stock market volatility brings a large stock price c00hange of advances or declines. Investors interpret a raise in stock market volatility as an increase in the risk of equity investment and consequently they shift their funds to less risky assets. It has an impact on business investment spending and economic growth through a number of channels. In this study, the major Index is designed to provide a single value for the aggregate performance of a number of companies representing a group of related industries or within a sector of the economy. The Index is based on a statistical compilation of the share prices of a number of representative stocks. It also creates the basis for portfolio trading by both active and passive investors. These markets Index are convenient gauges of the stock market that also indicate the direction of the market over a period of time. By using these markets Index, you can compare how well individual stocks have performed against market indicators for the same period.
Cite this article:
Goutam Tanty. Assessing the Bombay Stock Exchange Index Volatility through Garch Model. Asian Journal of Management. 2019; 10(3): 236-240. doi: 10.5958/2321-5763.2019.00037.4