This study addresses the question of whether the adaptive market hypothesis provides a better description of the behaviour of emerging stock market like India. We employed linear and nonlinear methods to evaluate the hypothesis empirically. The linear tests show a cyclical pattern in linear...

Introduction -- Random Walk Characteristics of Stock Returns -- Nonlinear Dependence in Stock returns -- Mean Reverting Tendency in Stock Returns -- Long Memory in Stock Returns: Theory and Evidence.-Long Memory in Stock Market Volatility -- Summary and Conclusion.