VOLATILITY GUESSTIMATION IN INFORMATION TECHNOLOGY ENABLED SERVICES BASED ON INDIAN STOCK MARKET: AN EMPIRICAL APPROACH WITH ECONOMETRIC MODELS

Abstract

Understanding and predicting volatility is important for investors, policy makers and market regulators in financial markets. This study focuses on volatility estimation in the IT enabled services (ITES) industry, which plays an important role in Indian banking This study uses the methodology of financial modelling to assess volatility, which will help with risk management and investment decisions The methodology collects information on the historical share prices of ITES companies listed on Indian stock exchanges. Several different statistical methods, including ARCH, GARCH, and EGARCH models, are used to model volatility in the industry. Additionally, the study includes other variables that can influence volatility such as macroeconomic indicators.