期刊名称：International Journal of Finance and Accounting
印刷版ISSN：2168-4812
电子版ISSN：2168-4820
出版年度：2014
卷号：3
期号：2
页码：102-111
DOI：10.5923/j.ijfa.20140302.07
语种：English
出版社：Scientific & Academic Publishing Co.
摘要：Post-September, 1992 surge of Foreign Institutional Investors flows and pouring money by Domestic Institutional Investors have been continuously raising the volume in Cash Segments of Indian stock market, i.e., the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). They critically consider Price/Earnings Ratios and Index returns for investment decisions. This study aims at finding out the most critical determinant of volume in cash segments. It has undertaken five years (2007-08-2011-12) monthly data of all those determinants to find out the most critical one to drive the volume in Cash Segments of NSE and BSE. It has used Augmented Dickey-Fuller (ADF) tests for judging stationarity of the data series. Based on the above results this study forms two multiple regression equations to get the empirical results. To make this study more reliable some tabular facts are also presented and multicollinearity of the data series is checked by Variance inflation factor (VIF) and tolerance limits. This study has found that the data series are stationary at level [i.e., I(0)]. The subsequent multiple regression results show that DIIs total trading value is the most critical driver in driving the volume in Cash Segments of the Indian stock market. However, it is in contradiction of the tabular facts which show FIIs total trading value as the major driver. Another critical observation is that multicollinearity is high in NSE data set, but not so in the BSE data set. Overall, this study has pointed out that total trading value of Indian stock market’s Cash Segments which is an evidence of market liquidity and size has been significantly influenced by DIIs total trading value, BSE SENSEX and CNX Nifty P/E Ratio, etc. in that order.
