Market Efficiency Essay Example

touch screens, and color TVs at major stations. Additionally, there will be 6,000 automatic ticket sale machines installed within two years, call centers for reservations, and ticket confirmation via mobile devices. These initiatives showcase the minister's confidence in the Indian IT industry. The impact on the stock exchange was almost immediate, with the intraday trading index for capital goods increasing by 2%.

On Tuesday, the 30-share sensitive index (Sensex) rose by 0.88%. Simultaneously, Jindal Stainless, a stainless steel manufacturer in the commodity market, saw its share price increase by 7.2% to Rs 160 crore.

Railway minister Lalu Prasad Yadav has proposed the construction of stainless steel coaches, which is expected to boost demand for this product in India. This development will benefit Jindal Stainless, one of the largest producers of stainless steel coaches, and it is predicted that the company's profitability will increase in the near future. Meanwhile, the 30-share Sensex closed at 17,806.19 with a surge of 155.62 points or 0.8%. This rise was driven by sustained buying in transport-sensitive sectors such as metal, capital goods, real estate, oil, and cement. As for the 50-share Nifty closing value, it was not provided.

The BSE index, also known as Sensex, gained 45 points or 1.33% and closed at 5,270.05. The market on the Bombay Stock Exchange showed a positive breadth, with 1,652 shares advancing, 1,074 declining, and 59 remaining unchanged. The combined traded turnover on Tuesday was approximately Rs 5,000 crore higher compared to Monday, totaling Rs 68,000 crore. According to some prominent brokers in the country, the key sectors that would benefit from the budget are logistics, EPC, IT, and electronic equipment.

In conclusion, the market's reaction to

the railway budget 2008 results was highly efficient. The market also takes into consideration factors other than the budget, as shown in Appendix F's graph of leading Indian IT companies Wipro and CMC. Prior to the budget on February 13th, both companies were trading at Rs 409.09 and Rs 438.95 respectively. The strengthening of the dollar against the INR and the news of the budget's proposed investment of Rs 100,000 crore in infrastructure created great business opportunities for Indian companies, boosting the IT stock. After the budget, there was a relatively positive reaction with most cement, steel, power, and IT stocks increasing in value. This resulted in the capital goods index rising by 2.05% on Tuesday, and the 30-share sensitive index (Sensex) also experiencing an increase.

The market responded to the budget by raising the share prices of IT companies, as depicted in appendix F. It also generated optimism for steel, iron, and electronic equipment companies, resulting in a temporary surge in their share prices. However, this increase was short-lived because the investment was intended for the upcoming five years. Furthermore, the market eagerly awaited Union-Budget 2008 scheduled later in the month.