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Friday, 13 September 2013

what is Stock Market Indicators

Stock Market Indicators

The most commonly used indicator of stock market development is the size of the market measured by stock market capitalization (the value of listed shares on the country’s exchanges) to GDP ratio. This ratio has improved signifi cantly in India in recent years.

At the end of the year 2001, the market capitalization ratio stood at 23.1 and this has signifi cantly increased to 64.26% at the end of September 2011. Similarly, the liquidity of the market can be gauged by the turnover ratio which equals the total value of shares traded on a country’s stock exchange divided by stock market capitalization.

Turnover Ratio is a widely used measure of trading activity and measures trading relative to the size of the market. As per the Standard and Poor’s Global Stock Market Fact Book 2011, India ranked 7th in terms of Market Capitalization and 10th in terms of total traded value in stock exchanges.
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