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In recent years, a great amount of volatility has been experienced by Indian stock market due to the global economic recession that began in the year 2008 (Bezemer, 2009). The efficiency and the transparency of the stock market were awfully affected by this incident. The year 2008 was an eventful year for the Indian stock market since it experienced a continual fall in the stock indices. Different industrial sectors such as real estate and IT and almost all other sectors went through a tremendous loss due to this recession. Nifty, which depicts the true picture of the Indian stock market, had reached historically high levels at the beginning of the year 2008, but also showed its worst performance at the end of the same year. Here comes the necessity of understanding the degree of stability of the Indian stock market and the state of recovery by the leading companies of the Indian market.
The decade of 2000s started with a retrospective effect of the Asian Financial Crisis 1997. Furthermore, this decade again faced another global financial meltdown in the year 2008. As a result, this decade has become a major focus among the researchers and policy makers to investigate the cause and effect of such recessions. Ample studies have been done to examine the effect of these crises on the economy (Sahu and Menon, 2011). In recent times, markets’ woes have increased manifold due to the uncertainties worldwide. Investors’ confidence has been unnerved by the ratings given by different rating agencies.
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