1. Some Evidences of Power- Law Distribution in Indian Capital Market DEBASIS BAGCHI BENGAL ENGINEERING AND SCIENCE UNIVERSITY, SHIBPUR

2. PURPOSE TO EXAMINE : 1. Whether a power-law distribution emerges at high market capitalization of the firms and how the distribution behaves for the firms with relatively lower market capitalization.

3. PURPOSE (contd..) 2. How exponent of power-law distribution behaves across different levels of firms’ performance in the capital market over time.

4. MODEL Pareto Distribution can be expressed as : x n = C. n - 1/γ where x n is the wealth of the n th ranked individual, C is a constant while  is the exponent.

5. MODEL

6. DATA ET 500 Database for highest market capitalization of the top 500 companies, listed in The National Stock Exchange of India, are used for the investigation.

7. REGRESSION RESULTS

8. Regression line for top 10% firms in 2004

9. Regression line for top 10% firms of August 2003

10. Value of Power –law Exponent at High Wealth Level

11. VALUE OF EXPONENT (  ) FOR FIRMS’ RANKED BETWEEN VARIOUS LEVELS OF MARKET CAPITALIZATION

12. VALUE OF  FOR POSITIVE & NEGATIVE GROWTH FIRM (DYNAMIC STATE)

13. DISCUSSION

14. DISCUSSION ( Contd…)

16. CONCLUSION

17. CONCLUSION (Contd..)

18. THANK YOU