Indian Stock Price Determination: Fundamental Versus Bubble

摘要: The real economy variables are not leading the stock prices in sense that returns cannot be predicted from fundamental variable returns. There is however, one causality relationship running return to money supply change; lead change changes could market. This perhaps explained by fact an increase price leads central bank (RBI) release some control over money, so more can freely move As a result increases. So while flow sector financial turns out quite weak, isolated for Indian market study period. Along with presence of volatility, absence explanatory power determining indeed point towards vulnerability recent years.