Rabia Najaf and Khakan Najaf
In this paper, we have analyzed that investors have not in rational behavior. In the imperfect markets, prices are always change in trends and these changes are known as the non random we have taken the data from 2003 to 2011. We have applied the different techniques and our results are showing that there is no long run relationship between these two dependent variables and stock exchange of India. Bombay stock exchange is known as the oldest stock exchange of India. It is also known as the fastest stock exchange of the world. It was established in 1876. The rating of bombing stock exchange is the at the 11th no. with the market capitalization is the 1.8$ trillion. It has listed near about 5600 companies. Bombay stock exchange is also known as the oldest stock exchange of Asia. Most of the investors, would like to invest in this stock market due to large captilization. According to securities act of India, Bombay stock exchange first recognized stock exchange of the India. In 2000, it was known as the derivatives market.
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