Fractal Structure Analysis in the Indian Stock Market

The Fractal Market Hypothesis questions the Efficient Market Hypothesis which asserts that all the available information may not be reflected in the market prices, since investors may not directly react to information, according to the information being received. Instead, investors may react after a delay, as in the case of information confirming a recent trend change. The present study has made an attempt to analyse the existence of fractal structure in the Indian Stock Market with special reference to BSE Sensex. The study found that the trend occasionally followed the random walk initially. Afterwards, the trend reveals persistent behavior. Thus the fractal structure exists in the BSE Sensex