Impact of Demonetization on Stock Market Efficiency: A Study of BSE SENSEX and NSE NIFTY Index

Authors

  • Saluja HS Management Department, Maharaja Ranjit Singh Group of Institutions, Devi Ahilya Vishwavidyalaya, Indore, India

DOI:

https://doi.org/10.26438/ijcse/v6si9.9497

Keywords:

Demonetization, Bombay Stock Exchange, National Stock Exchange, Weak Form of Stock Market Efficiency, BSE SENSEX Index, NSE Nifty Index

Abstract

Demonetization may affect the various sectors of the Indian economy. As Demonetization affect liquidity in the economy that impacted economic activities. The change in the money supply in any economy might have affected the performance of its various sectors and might affect the Stock Market Efficiency. So, the present study empirically examines the Weak Form of Market Efficiency changes of BSE SENSEX Index and NSE Nifty Index of Indian Stock Market, due to demonetization. For this purpose daily returns of BSE SENSEX Index of Bombay Stock Exchange (BSE) and CNX Nifty Index of National Stock Exchange (NSE) will be considered.

References

[1] P. Waknis, “Demonetisation: Some Theoretical Perspectives”, Retrieved from MPRA: https://mpra.ub.uni-muenchen.de/id/eprint/76391

[2] E. Fama, “The Behaviour of Stock Market Prices”, Journal of Business, Vol. 38, pp. 34-104, 1965.

[3] E. Fama, “Efficient Capital Markets: A Review of Theory and Empirical Work”, Journal of Finance, Vol. 25, pp. 383-417, 1970.

[4] B. Maskay, “Analyzing the Effect of Change in Money Supply on Stock Prices”, The Park Place Economist, Vol.15, pp. 72-79, 2007.

[5] K. Raymond, “Is There a Long Run Relationship between Stock Prices and Monetary Variables? Evidence from Jamaica. Bank of Jamaica”, Financial Stability Department, Kingston, 2009.

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Published

2025-11-17
CITATION
DOI: 10.26438/ijcse/v6si9.9497
Published: 2025-11-17

How to Cite

[1]
H. Saluja, “Impact of Demonetization on Stock Market Efficiency: A Study of BSE SENSEX and NSE NIFTY Index”, Int. J. Comp. Sci. Eng., vol. 6, no. 9, pp. 94–97, Nov. 2025.

Issue

Vol. 6 No. 9 (2018): IJCSE Special Issue November Edition

Section

Research Article

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