AN EMPIRICAL ANALYSIS OF SELECTED COMPANIES OF NON-METAL, REAL ESTATE AND MINING INDUSTRIES IN INDIAN CAPITAL MARKET

Abstract

There exists a relationship between stock returns and trading volume in the world capital market and the changes in stock return does impact trading volume or trading volume does impact stock return. Some studies show that there is high degree relationship and some research studies show moderate or low or no relationship between stock return and trading volume. The present research paper attempts to examine empirical status of selected companies from non-metal, real estate and mining industries in India for finding out relationship between stock returns and trading volume. Hence, changes in returns and volume do reflect a relationship in non-metal industry but not in mining and real estate. Therefore, there is no randomness in the behaviour of stock return and trading volume changes in this study of non-metal industry in India. But in case of empirical analysis of three industries at firm level the result shows moderate degree of relationship between returns and volume of all 81companies from non-metal, real estate and mining industries.