The present issue comprises three research papers. The first paper, “Are Indian
Stock Markets Weak-Form Efficient? – Evidence from NSE and BSE Sectoral
Indices”, by Srinivasan Palamalai and M Kalaivani, examines the weak-form efficiency of Indian stock markets using both parametric and nonparametric tests, viz., autocorrelation test, Augmented Dickey-Fuller test, runs test and variance ratio test. To test the market efficiency, the study considers the daily closing prices of 13 and 10 sectoral indices of Bombay Stock Exchange (BSE) and National Stock Exchange (NSE), respectively, along with the BSE SENSEX and CNX NIFTY. The results provide evidences for the absence of the weak-form efficiency and random walk hypothesis in the case of all sectoral indices of NSE and BSE along with the CNX NIFTY and BSE SENSEX. Thus, trading strategies can be formulated by investors to gain abnormal returns in the Indian stock markets. And it can be inferred that there is a possibility of earning extra income on account of inefficiency in these market portfolios.
The second paper, “The Volume-Returns Relationship in the Indian Stock Market”, by Mahender Yadav, Shalini Aggarwal and Simmi Khurana, examines the causal relationship between trading volume and stock market returns using daily data of the S&P CNX NIFTY and SENSEX for the period April 1, 2002 to March 31, 2012. Using descriptive statistics, correlation analysis, unit root tests and Granger causality test, the study shows that in BSE SENSEX, the causality runs both ways, i.e., return causes volume and volume causes return, while in S&P CNX NIFTY, causality is one way. The dependence of return on past returns, past volume and current volume always raises questions for investors’ decisions. The authors urge that the dynamic and causal relationship between trading volume and stock return volatility may help market participants to understand the future market movement and accordingly take strategic decisions to meet their expectations.
The last paper, “The Efficient Market Hypothesis: A Critical Review of the Literature”, by Mehwish Naseer and Yasir bin Tariq, reviews extensively the theoretical and empirical literature on Efficient Market Hypothesis (EMH) which offers mixed evidences. Some studies supported the hypothesis, while others have revealed some anomalies, i.e., deviations from the rules of EMH. This review paper presents an analysis of EMH and possible causes and evidences of anomalies. It also examines stock market efficiency in Karachi Stock Exchange.
Automated Teller Machines (ATMs): The Changing Face of Banking in India
Bank Management
Information and communication technology has changed the way in which banks provide services to its customers. These days the customers are able to perform their routine banking transactions without even entering the bank premises. ATM is one such development in recent years, which provides remote banking services all over the world, including India. This paper analyzes the development of this self-service banking in India based on the secondary data.
The Information and Communication Technology (ICT) is playing a very important role in the progress and advancement in almost all walks of life. The deregulated environment has provided an opportunity to restructure the means and methods of delivery of services in many areas, including the banking sector. The ICT has been a focused issue in the past two decades in Indian banking. In fact, ICTs are enabling the banks to change the way in which they are functioning. Improved customer service has become very important for the very survival and growth of banking sector in the reforms era. The technological advancements, deregulations, and intense competition due to the entry of private sector and foreign banks have altered the face of banking from one of mere intermediation to one of provider of quick, efficient and customer-friendly services. With the introduction and adoption of ICT in the banking sector, the customers are fast moving away from the traditional branch banking system to the convenient and comfort of virtual banking. The most important virtual banking services are phone banking, mobile banking, Internet banking and ATM banking. These electronic channels have enhanced the delivery of banking services accurately and efficiently to the customers. The ATMs are an important part of a bank’s alternative channel to reach the customers, to showcase products and services and to create brand awareness. This is reflected in the increase in the number of ATMs all over the world. ATM is one of the most widely used remote banking services all over the world, including India. This paper analyzes the growth of ATMs of different bank groups in India.
International Scenario
If ATMs are largely available over geographically dispersed areas, the benefit from using an ATM will increase as customers will be able to access their bank accounts from any geographic location. This would imply that the value of an ATM network increases with the number of available ATM locations, and the value of a bank network to a customer will be determined in part by the final network size of the banking system. The statistical information on the growth of branches and ATM network in select countries.
Indian Scenario
The financial services industry in India has witnessed a phenomenal growth, diversification and specialization since the initiation of financial sector reforms in 1991. Greater customer orientation is the only way to retain customer loyalty and withstand competition in the liberalized world. In a market-driven strategy of development, customer preference is of paramount importance in any economy. Gone are the days when customers used to come to the doorsteps of banks. Now the banks are required to chase the customers; only those banks which are customercentric and extremely focused on the needs of their clients can succeed in their business today.
