Sensex bear phase

What is a Bull Market?

Bear market could start as soon as end or beginning of next year. Rogers​, 76, reiterated his fear that a big bear market was in the offing. . App for the Latest News in Business, Sensex, Stock Market Updates & More. If we consider the movement of the Sensex since , there have been four instances of short and deep cyclical bear phases. Spanning the. The paper indicates 12 bull and bear the return and volatility of the stock market (​Pandian & phases in the Sensex and Nifty during the sample period of

By the Sensex and Nifty would have crossed many milestones, like The tech bubble burst of led to a bear phase, which lasted. If we consider the movement of the Sensex since , there have been four instances of short and deep cyclical bear phases. Spanning the. During February, the Sensex was in a bear market having fallen over 23% from the previous peak reached in March Last month the index.

The paper indicates 12 bull and bear the return and volatility of the stock market (​Pandian & phases in the Sensex and Nifty during the sample period of During February, the Sensex was in a bear market having fallen over 23% from the previous peak reached in March Last month the index. A market trend is a perceived tendency of financial markets to move in a particular direction A secular bear market consists of smaller bull markets and larger bear markets; a secular bull market India's Bombay Stock Exchange Index, BSE SENSEX, had a major bull market trend for about five years from April to.

To browse Academia. Skip to main content. You're using an out-of-date version of Internet Explorer. Log In Sesex Up. Publishing India Group. Sunaina kanojia. Neha Arora. Investment and trading in stock market have investors put air to these phases while making phase decision to buy, increased manifold in the recent past due to widespread sell, or stay invested.

The present paper baer to identify and information, ease of technology and high returns. India analyse the two most popular market phases, i. The sensex Algorithm and time series data. Further, it seeks to analyse the have run up considerably and the BSE Sensex was at a distributional characteristics of the variances in stock returns and new high of over 27, in September The study arrange for evidence in the bearish market and these ups and downs determine that in bull markets, stock prices run far ahead of earnings and for fairly long periods of time.

A stable government support has created years with the associated factors responsible for the shift of bull positive sentiments about the performance of Indian and bear market phases. The results phase considerable support economy in the world market thus, it is pertinent sesex this for the sensrx that markets choose to ignore adverse possibilities and stage to study and understand the nature of volatility phase phasw zest to favourable possibilities and market declines can in Indian Stock Market.

The strong growth potentials partly be explained by increases in risk. Pphase view of analysing the Sensex Algorithm distributional characteristics of sensex variances in stock returns and searching evidence of asymmetries, if any in 1.

Introduction volatility phasse different market conditions which may help to bear light on the sebsex and bear phases of Indian Although there is phase clear classification of stock market equity phaxe.

Therefore, to address the issues of bull and regimes i. As the stock market exhibits of incorporating regime-switching by identifying the different phsse of increasing and decreasing stock phase, bull and bear market hpase substantial from an bear analysing the volatility and risk of stock market returns perspective. Email: sunaiankanojia gmail. Email: neha. Review of Literature found that during the first beaf months a sensex market displays very strong return momentum that never fully disappears The review of existing literature presented in this section throughout bull markets.

They found that falling volume attempts to gauge the relationship of volatility and returns is associated with higher monthly return volatility, sensrx generated in different market scenarios. Roy and Karmakar unexpected result that contrasts with empirical results for found that much of ;hase movement in stock market daily return data.

Harvey sensex that besr bear long time period. Amongst emerging markets except correlation in emerging market ber are much higher India and China, all other countries phase low returns than observed in developed markets because of that lack seensex negative returns with high volatility. They of diversification and trading depths in emerging markets. However, by sensec volatility more likely to be affected by local information than the into its predictable and unpredictable components, they developed market returns.

Aggarwal, Inclan, and Leal show that in rising market periods, there is a positive found that volatility was high in emerging markets and statistically significant relationship between excess and shifts in sensec are related to important country returns and ex ante market volatility. Tripathy and Garg established the presence of leverage effect in the returns series in sensex markets indicating that 3.

Formulation of Hypothesis volatility tend to rise more with bad news rather than with Pandian andJeyanthi analysed the return and good news of same magnitude. They advise the investors volatility in bull and bear market phases in Indian stock to formulate future investment strategies by analysing market. They found that open-close volatility is lower recent and historical newsfor efficient management senseex than the high-low volatility in srnsex volatility for the financial risks and to reap benefits in the stock markets.

Further they found that the close to close volatility and the open to open volatility in the Nifty 2. Another method used in literature to detect bull and bear phases is two state Various researchers have used Bry and Boschan Markov switching autoregressive model MS 2 -AR turning point algorithm to identify market phases.

Ahmad and Kamaiah using pjase method found Gonzalez, Powell, Shi, and Wilson using the that zensex bear regime the average expected returns are algorithm identified phases and found seneex the bull and negative with high volatility compared to the bull regime bear market phases are associated with distinct and in Sensex. They also inferred from Nifty returns that the persistent mean return shifts.

They presented that early market is more biased towards bull regime with very high warning signs of subsequent poor returns provided by persistence with positive returns and there is very high turning points in share price index and volume data can probability of occurrence of extreme events.

Bordoloi be important to investors, along with large and persistent and Shankar found that stock returns possess return differences between bull and bear markets. Various studies used the conditional volatility models to estimate volatility clustering in The present sennsex attempts to identify and analyse the bull Indian stock market.

KarmakarJoshi and Pandya and bear phases in Indian stock market using monthlyand Goudarzi and Ramanarayanan found closing data phase Sensex bear Nifty indices for a span that vanilla GARCH 1, 1 model satisfactorily explains of 19 years from April to June The monthly volatility clustering and its high persistence and is the closing data of each index for the period of nineteen years most bear for the series under analysis. Karmakar were taken to detect Bull and Bear phases and to analyse stated that volatility show high persistence and stock market returns and volatility in each phase.

The bearr are predictable and that periods of high and low volatility have been collected from the archives of Bombay Stock tend ssensex cluster. Many international and national journals forecasting ability of different traditional and modern have also been consulted for existing literature relating to volatility estimators and found that for estimating the methods and bear to detect bull and bear phase in stock volatility, the extreme value estimators perform better on market.

The log returns are calculated for yearly index efficiency criteria that the conditional bear models. Gonzalez et al. Further, Ang and The study uses unconditional method, i. For the purpose of estimating returns across bull and bear markets. Therefore, the present study aims on Where Rt is logarithmic daily return at bear, t and Pt-1 and exploring and analysing the two phases of stock market, Pt are monthly closing prices of the index at two successive namely Bull and Bear phases in context of Sensex and days, t-1 and t respectively.

Volatility measures the risk Nifty the two primary indexes in the Indian Stock Market. Therefore, the paper aims to identify bull transformation of original series. Thus we have transformed and bear market turning points using a formal turning series by taking natural logarithm of the series. The two point identification procedure and study the effects of bull advantages of going for the transformation of original and bear on the stock return and volatility.

Second, seensex change in the log of the stock price index yields continuously compounded series. In order sensex 1. Determination of initial turning points in raw data. By choosing local peaks troughs as occur- Phaze method has been applied to identify turning points. Dating methods depend on the b. A turning point is a date that separates two phases of multiple troughs. Censoring operations ensure alternation after each.

Elimination of turns within 6 months of begin- states based on sequences of stopping times tracing ning and end of series. This definition b. Elimination of peaks or troughs at both ends essentially implies that the stock market switches from of series which are lower or higher.

Elimination sensex cycles peak to peak or trough certain percentage since their previous local peak within to trough whose duration is less than 16 that near state. Likewise, the stock market switches from months. Elimination of phases peak to trough or within that bear state. Statement of final turning points. Estimation and Empirical Analysis proposed an algorithm which has been applied in several Summary statistics for BSE-Sensex stock index returns researches like LaytonArtis et al.

JorratBruno and OtrantoGonzalez et al. The mean monthly capital return over the sample data either absolutely or with some variations. Pagan is positive 0. Skewness is for its application on asset price, but they stick fairly close a measure of asymmetry and it tells whether the series to the original BB algorithm.

BB algorithm identifies is a normal distribution or asymmetrical distribution. A local minimum is and phaes asymmetrical. Kurtosis is the measure of flatness a trough phaze the following local maximum a peak so that or sharpness of a curve. The observed kurtosis value of the period between trough and peak is an expansion, and Sensex return series is 3. The Jerque-Bera test of start of the rising phase of the business cycle. Two major normality is an asymptotic, or large-sample test.

The null alterations are made to bdar original BB algorithm, due to hypothesis is that the distribution is normally distributed. The first change to the The Jerque-Bera statistics is 8.

Secondly, 0. The log-returns of Sensex, respectively. The graph of log returns of Sensex shows that then again taking upward course of direction breaking all data series.

The Thestandard pyase deviationofofNifty Niftyreturns phase. The standard deviation of Nifty returns is 7. Observing the skewness, kurtosis and Jarque- which is higher than Sensex returns which indicate that Bera statistics in Table 2 it is displayed that Nifty returns the volatility and risk that displayed of Nifty is higher Nifty returns seriesthan is alsoSensex series not normally is alsoand distributed not normally distributed is leptokurtic for the study and is leptokurtic period in India.

The Nifty log returns and log-returns of Nifty, respectively. The graph phase raw graph shows that returns whether positive or negative tend The graph of raw monthly data shows that the Nifty has continuously beengoing northward with monthly data shows that the Nifty has continuously been to cluster closely at xensex time periods in the sample plunging south only in late during going northward with plunging south only in late sub-prime crisis data and thenThus, series.

Theand Nifty log returns. In the following returns are beear with the volatile periods of section descriptive statistics has been used to present the sensex sennsex is one of the oldest senwex characteristic of characteristics of return of the Nifty and Sensex during the study period in Table 3.

Marchan increase of The This financial year gave a monthly mean return of 2. The spurt becoming positive in some months while mostly being in stock prices was to some extent assisted by massive negative. The tightness of monetary policy and its inflow of funds by FIIs and mutual funds. The volatility consequential effects on liquidity attributed to the market measured by standard deviation of returns was 0.

However, Nifty reached Sensex and 0. There was a large year continued for major part in the next year.

The Indian market has experienced strong bull and markets over the years since Source: Dalal Street. Hi, I want to know more details about Bear phase and Bull phase in indian stock market, means during the Bear phases which sectors and which stocks had more decline and Bull phase as well. Maybe in the future I will look into writing a post on this. Thanks for your comment.

Your email address will not be published. The bear market at that time lasted just 13 months. The index failed to hold on to 11,; 11,; 11, and 11, levels. In terms of important levels, Nifty50 broke below days EMA placed at 11, and is now trading near the intra-month low of 11, formed on July 9. A break below this level could take the index towards lower levels of DMA placed at 11, The trend so far has been a mixed bag for India Inc.

Infosys reported June quarter numbers which were slightly better than estimates, and most global brokerage firms maintained their rating but raised their month target price. In the absence of any near term triggers, the negative bias in Indian equities could continue with pronounced weakness in midcap space," he added. Reproduction of news articles, photos, videos or any other content in whole or in part in any form or medium without express writtern permission of moneycontrol.

Buoyancy in telecom sector was largely due to likelihood of hike in tariff and deferment of spectrum dues is likely to improve cash flow of these companies in the near term. Momentum build-up was seen in financials especially in PSU banks due to reduction in stressed assets and strengthening of IBC process. Better-than-expected results and value buying led to gains in Pharma.

Auto and consumer stocks underperformed on account weak discretionary spending. Considering this, Nifty is likely to trade in a range of 11,,," Vinod Nair said. It is probable that the forecasted growth of 6. Reproduction of news articles, photos, videos or any other content in whole or in part in any form or medium without express writtern permission of moneycontrol. Post-Q2 results, market seems to have entered an indecisive phase of trade having rallied well in the last 2 months, Vinod Nair said Sunil Matkar moneycontrolcom.