Articles Review

Indian Journal of Finance: Volume 5, Number 5, May 2011 & Volume 5 Number 4, April 2011umber May 2011

A Study On Effectiveness Of Elliott Wave Theory Forecasts For Precious Metals With Reference To Gold & Silver
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Dr.C.Dharmaraj

In this article researcher tries to outline the Elliott Wave Theory Forecasts for Precious Metals With Reference To Gold & Silver. During the 1920-30s, there was an analyst named Ralph Nelson Elliott who came up with a theory called Elliott Wave Theory. Inspired by the Dow Theory and by observations found throughout nature, Elliott concluded that the movement of the stock market could be predicted by observing and identifying a repetitive pattern of waves, by applying this Elliott wave theory trader an investor could reduce risk and maximize profit. This theory will be effective when one learns this theory in depth. In applying the Elliott Wave Principle, the first task is to look at charts of market action and identify any completed five-wave and three-wave structures. Only then can we interpret where the market is and where its likely to go. While applying the Elliott Wave Principle to any chart, we must keep in mind an important point that the Elliott Wave Principle does not provide certainty about any one market outcome. Elliott Wave analysis is a collection of complex techniques. Approximately 60 percent of these techniques are clear and easy to use. The other 40 are difficult to identify, especially for the beginner. The practical and conservative approach is to use the 60 percent that are clear. In this study, the researchers have used triangle pattern analysis and thrust wave analysis to predict the market of gold and silver.

1 BESs IMSR

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Savings and Investment Pattern Of School Teachers - A Study With Reference To Sivakasi Taluk, Tamil Nadu - Dr.S.Mathivannan

In this article researcher tries to outline Savings and Investment Pattern With Reference To Sivakasi Taluk, Tamil Nadu. Money is an inextricable part of our life. People work to earn money to purchase a house, to marry off their children, to live and to eat. So, saving is necessary to survive. To save means to put aside a portion of income, deferring its consumption until a future date. Saving means the total accumulated amount of income that is not spent on consumption. In economics, personal saving has been defined as personal disposable income minus personal consumption expenditure. Saving may take the form of increase in bank deposits, purchase of securities, or increased cash holdings. The extent to which individuals save is affected by their preference for future over present consumption, their expectations of future income and to some extent, by the rate of interest. Saving plays a vital role in building up the household economy as well as the national economy. Savings provide the financial security to savers. Hence, attractive saving devices are very much necessary to increase and channel the savings in developing countries. India is taking much effort in inculcating the saving habit among the people. In order to mobilize savings, the Government of India is issuing saving certificates, government bonds and securities carrying high rates of interest.

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Long Run Financial Market Cointegration and Its Effect on International Portfolio Diversification - Anindya Chakrabarty

In this researcher tries to outline Long Run Financial Market Cointegration which has effected on international portfolio investigates the causality and long run equilibrium relationship between the Indian stock market and the stock market indices of two developed countries namely USA and UK using Engle Granger causality and Cointegration regression tests. The study depicts that USA and UK market factors influence Indian stock market in the long run. Financial integration is the key to delivering competitiveness, efficiency and growth. But will integration also bring about financial stability? One of the main motivations behind these cross border investments is portfolio hedging, which unfortunately is not effective in an environment of high cross border financial cointegration. It is evident from the present study that investment in US and UK market by an Indian investor with an intention of reducing risk will bear no fruit in the long run. While the increasing surge of international trade and cross border investment in an era of globalization and multinational companies (MNCs), is buttressing financial integration across countries, the financial stability is still a far cry.

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FDI prospects and Challenges Ahead for India - Dr.Ravi Aluvala

In this article researcher tries to outline FDI prospects and its challenges in India. One of the most notable features of economic globalization has been the increased importance of foreign direct investment around the world. Some view it as an engine of economic growth and development, while others look upon it as a panacea for all ills. It is, however, important to weigh the costs and the benefits of Foreign Direct Investment (FDI) to gauge whether FDI has a positive impact on economic development. FDI has the potential to generate employment, raise productivity, enhancing competitiveness of the domestic economy through transfer skills and technology, strengthening infrastructure, enhance exports and contribute to the long-term economic development of the world's developing countries. More than ever, countries at all levels of development seek to leverage FDI for development. We, in India, see FDI as a developmental tool in all sectors and tourism has no exceptions.

Liberalization policies have led to rapid growth in FDI inflows in recent years. Based on the benefits associated with FDI, several developing; as well developed countries compete fiercely for FDI. They try to attract foreign investors by providing financial and fiscal incentives, undertaking corporate restructuring and economic reforms and inviting foreign investors in the privatization of state-run units. In 2001, for example, 71 countries made 208 changes in their FDI regulatory regimes, out of which 194 had done the same to attract higher FDI. The global market for foreign direct investment (FDI) has undergone significant changes in recent years, with the increasingly important role played by emerging market multinational enterprises (MNEs) being one of the most important ones among them. While outward FDI (OFDI) from these countries, in itself, is not new, the magnitude that this development has achieved is raising a host of issues that are examined in this paper. The rise of global OFDI over the past three decades has been remarkable. Since 1980- 1985, when global OFDI flows averaged roughly US$50 billion per year, OFDI flows have grown by a factor of forty, to surpass US$2.1 trillion in 2007. In 2008, due to the financial crisis and the global economic downturn, global OFDI flows fell by roughly 10% to US$1.9 trillion.
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Seasonal Anomalies in Stock Returns: Evidence from India - Manpreet Kaur

The present study is an endeavour to investigate seasonal anomalies, if any, existing in stock returns in India. The daily closing prices of two indices- BSE 500 and S&P CNX 500 have been used to examine the presence of month-of-the-year and day-of-the-week effects in the Indian stock market. The reference period ranges from January 2002 to December 2009. The findings show presence of month-of-the-year effect but absence of day-of-the-week effect in Indian stock market. This indicates that the Indian stock market is not fully efficient yet. Its implication is that the existence of month-of-the-year effect may provide opportunities to formulate profitable trading strategies so as to earn the increased return that does not commensurate with the risk.

5 BESs IMSR

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Testing Of Capital Asset Pricing Model (CAPM) During an Upward Trend in the Indian Stock Market - Ravi Kant

This articles tests whether Capital Assets Pricing Model (CAPM) holds in the Indian stock market by applying the test for the intercept and the slop for the standard form of CAPM. The first objective of study is to ascertain the relationship between return of securities and market returns. The second objective of the study is to test the empirical validity of the standard CAPM in the Indian context. The third objective of study is to ascertain the relationship between returns of securities and market capitalization (size). The empirical test of the CAPM is carried out by using the weekly data of 30 stock traded is the Mumbai Stock Exchange (BSE) during the period July, 2007 to Dec., 2007. Data has taken from The Economic Times news paper and PROWESS, while selecting the sample securities, sufficient care is taken to ensure that all sectors of industries were represented. This paper measures return and risk, correlation between two variables, alphas (intercept), coefficient of determination, T-statistics. The evidence from Tables shows a strong positive relation between individual stock excess return and markets index both in entire and sub period.

6 BESs IMSR