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  Published Paper Details:

  Paper Title

Dynamic Relationship between Stock Returns, Trading Volume and Volatility: Evidence from Indian Stock Market

  Authors

  Dr. K. LAXMAN GOUD

  Keywords

Indian stock market, stock returns, trading volume, volatility, Nifty 50, quantile regression, Granger causality, market microstructure, implied volatility, risk management.

  Abstract


This research paper investigates the dynamic relationship between stock returns, trading volume, and volatility in the Indian stock market, with a focus on the Nifty 50 index from 2018 to 2023. Employing advanced econometric models such as quantile regression and Granger causality tests, the study explores how changes in stock returns influence trading volumes and volatility, and vice versa. Findings reveal an asymmetric effect where negative returns significantly increase volatility, while positive returns tend to elevate trading volume. The study further highlights a unidirectional causality from implied volatility to stock returns, suggesting that volatility indexes can serve as effective hedging tools for investors. These insights contribute to understanding market microstructure and can assist investors in making informed decisions by anticipating market fluctuations and managing risk effectively.

  IJCRT's Publication Details

  Unique Identification Number - IJCRT2510339

  Paper ID - 295103

  Page Number(s) - c839-c848

  Pubished in - Volume 13 | Issue 10 | October 2025

  DOI (Digital Object Identifier) -   

  Publisher Name - IJCRT | www.ijcrt.org | ISSN : 2320-2882

  E-ISSN Number - 2320-2882

  Cite this article

  Dr. K. LAXMAN GOUD,   "Dynamic Relationship between Stock Returns, Trading Volume and Volatility: Evidence from Indian Stock Market", International Journal of Creative Research Thoughts (IJCRT), ISSN:2320-2882, Volume.13, Issue 10, pp.c839-c848, October 2025, Available at :http://www.ijcrt.org/papers/IJCRT2510339.pdf

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ISSN: 2320-2882
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Journal Starting Year (ESTD) : 2013
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ISSN and 7.97 Impact Factor Details


ISSN
ISSN
ISSN: 2320-2882
Impact Factor: 7.97 and ISSN APPROVED
Journal Starting Year (ESTD) : 2013
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