Abstract

Introduction: Volatility in the prices of stock market creates an atmosphere of uncertainty and hampers productive investment. Foreign market changes are considered as one of the factors affecting the Indian stock market. The volatility in the Indian stock market exhibits characteristics similar to those found earlier in many of the major developed and emerging stock markets. Purpose: The purpose of paper is to investigate the nature and characteristics of stock market volatility in India compare to foreign markets. The study establishes relationship in the movements of the Indian Stock Market in comparison to its international counterparts. Methodology: To study the effect on Indian stock market (SENSEX) with the change in the other foreign market indices, 13 major foreign stock exchanges has been selected based on the Market Capitalization.