A STUDY OF PAST PRICES IMPACT ON CURRENT PRICES OF SHARES IN INDIAN STOCK MARKET WITH SPECIAL REFERENCE TO FMCG SECTOR

Abstract

The goal of this paper is to contemplate the efficiency of Indian stock markets by analyzing past prices impact on current prices of shares during the period 2019-2020. This is finished by utilizing efficient market hypothesis (EMH) which infers that all realized data is reflected in share price and the price movements are free to each other. Subsequently EMH states that share price are not affected by past prices, freely accessible data and insider data. It has proved in different investigations, however their results are clashing. Basically clashes are because of the advancement status of the economy & markets for example developed economy & markets or developing economy & markets. The focus of this research paper is on the historical prices and endeavors to check and verify the weak form of efficient market in Indian stock market with main reference to 10 organizations of FMCG sector. The data is gathered based on one year's day to day closing prices, for the financial year 2019-20, for the test of null hypothesis, for example Ho: - Price changes  Randomly against alternate hypothesis Ha: - Price change isn't Random. The gathered information is analyzed with the help of run test at 10% significance level. The conclusion is that for 80% of the sample, null hypothesis has been acknowledged which implies Indian capital markets are efficient in weak form for example share prices move freely of one another during the progressive days.