Modelling Stock Market Volatility in India: A GARCH Analysis of the Nifty 50 Index

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Main Authors: Nidhi, Dhankhar, Sunita, Mehla, Arti, Gaur, Suman, Ghalawat
Format: Recurso digital
Published: Zenodo 2026
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author Nidhi, Dhankhar
Sunita, Mehla
Arti, Gaur
Suman, Ghalawat
author_facet Nidhi, Dhankhar
Sunita, Mehla
Arti, Gaur
Suman, Ghalawat
contents <p>The present study aims to examine the return and volatility patterns of the Indian stock market. The analysis is based on daily closing prices of the Nifty 50 index collected from the official website of Investing.com for the period from 1 April 2002 to 31 March 2024. The return and volatility behavior of the market was analyzed using the GARCH model. The results indicate that the Nifty 50 index generated positive and statistically significant returns over the study period. The findings further confirm that the conditional variance of returns is influenced by both lagged error terms and lagged conditional variance, validating the presence of volatility clustering in the Indian stock market. These findings provide important implications for investors and traders in formulating effective investment strategies to achieve abnormal returns.</p>
format Recurso digital
id zenodo_https___doi_org_10_5281_zenodo_18414679
institution Zenodo
language
publishDate 2026
publisher Zenodo
record_format zenodo
spellingShingle Modelling Stock Market Volatility in India: A GARCH Analysis of the Nifty 50 Index
Nidhi, Dhankhar
Sunita, Mehla
Arti, Gaur
Suman, Ghalawat
Return, volatility, GARCH, abnormal returns
<p>The present study aims to examine the return and volatility patterns of the Indian stock market. The analysis is based on daily closing prices of the Nifty 50 index collected from the official website of Investing.com for the period from 1 April 2002 to 31 March 2024. The return and volatility behavior of the market was analyzed using the GARCH model. The results indicate that the Nifty 50 index generated positive and statistically significant returns over the study period. The findings further confirm that the conditional variance of returns is influenced by both lagged error terms and lagged conditional variance, validating the presence of volatility clustering in the Indian stock market. These findings provide important implications for investors and traders in formulating effective investment strategies to achieve abnormal returns.</p>
title Modelling Stock Market Volatility in India: A GARCH Analysis of the Nifty 50 Index
topic Return, volatility, GARCH, abnormal returns
url https://doi.org/10.5281/zenodo.18414679