A Study on the Topological Insights and Network Visualization Mapping of the Indian Equity Market

The primary objective of this empirical study is to investigate the Indian equity market network by analyzing its topological properties using the disparity filtering technique, and a minimum spanning tree. It investigates the backbone structure of the reduced weighted equity network and highlights...

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Main Authors: Biplab Bhattacharjee, Moinak Maiti
Format: Article
Language:English
Published: MDPI AG 2025-04-01
Series:Risks
Subjects:
Online Access:https://www.mdpi.com/2227-9091/13/4/76
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author Biplab Bhattacharjee
Moinak Maiti
author_facet Biplab Bhattacharjee
Moinak Maiti
author_sort Biplab Bhattacharjee
collection DOAJ
description The primary objective of this empirical study is to investigate the Indian equity market network by analyzing its topological properties using the disparity filtering technique, and a minimum spanning tree. It investigates the backbone structure of the reduced weighted equity network and highlights the sector-based cluster formation. This study also examines the relative importance of each sector by utilizing different key network metrics, with comparative analysis against other emerging markets. It observes a high sector-specific dominance, power imbalance, disparity, and risk concentration in the healthcare and technology sectors. It also finds that fast-moving consumer goods and the healthcare sector can play important roles in maintaining economic stability, public health, and social wellbeing. The findings of this study are highly useful in understanding the market structure, risk management, and investment decisions in the emerging market context of India.
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spelling doaj-art-4aea6eb05c4e4f68a06f5918f456c1b12025-08-20T02:25:02ZengMDPI AGRisks2227-90912025-04-011347610.3390/risks13040076A Study on the Topological Insights and Network Visualization Mapping of the Indian Equity MarketBiplab Bhattacharjee0Moinak Maiti1Jindal Global Business School, O.P. Jindal Global University, Sonipat 131001, IndiaDepartment of Finance, School of Economics and Finance, University of the Witwatersrand, Johannesburg 2050, South AfricaThe primary objective of this empirical study is to investigate the Indian equity market network by analyzing its topological properties using the disparity filtering technique, and a minimum spanning tree. It investigates the backbone structure of the reduced weighted equity network and highlights the sector-based cluster formation. This study also examines the relative importance of each sector by utilizing different key network metrics, with comparative analysis against other emerging markets. It observes a high sector-specific dominance, power imbalance, disparity, and risk concentration in the healthcare and technology sectors. It also finds that fast-moving consumer goods and the healthcare sector can play important roles in maintaining economic stability, public health, and social wellbeing. The findings of this study are highly useful in understanding the market structure, risk management, and investment decisions in the emerging market context of India.https://www.mdpi.com/2227-9091/13/4/76equity marketdisparityfinancial networkstemporal dynamics
spellingShingle Biplab Bhattacharjee
Moinak Maiti
A Study on the Topological Insights and Network Visualization Mapping of the Indian Equity Market
Risks
equity market
disparity
financial networks
temporal dynamics
title A Study on the Topological Insights and Network Visualization Mapping of the Indian Equity Market
title_full A Study on the Topological Insights and Network Visualization Mapping of the Indian Equity Market
title_fullStr A Study on the Topological Insights and Network Visualization Mapping of the Indian Equity Market
title_full_unstemmed A Study on the Topological Insights and Network Visualization Mapping of the Indian Equity Market
title_short A Study on the Topological Insights and Network Visualization Mapping of the Indian Equity Market
title_sort study on the topological insights and network visualization mapping of the indian equity market
topic equity market
disparity
financial networks
temporal dynamics
url https://www.mdpi.com/2227-9091/13/4/76
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