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

Author

Listed:
  • Biplab Bhattacharjee

    (Jindal Global Business School, O.P. Jindal Global University, Sonipat 131001, India)

  • Moinak Maiti

    (Department of Finance, School of Economics and Finance, University of the Witwatersrand, Johannesburg 2050, South Africa)

Abstract

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.

Suggested Citation

  • Biplab Bhattacharjee & Moinak Maiti, 2025. "A Study on the Topological Insights and Network Visualization Mapping of the Indian Equity Market," Risks, MDPI, vol. 13(4), pages 1-28, April.
    • Handle: RePEc:gam:jrisks:v:13:y:2025:i:4:p:76-:d:1634616
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    References listed on IDEAS

    as
    1. Sun Meng & Yan Chen, 2023. "Market Volatility Spillover, Network Diffusion, and Financial Systemic Risk Management: Financial Modeling and Empirical Study," Mathematics, MDPI, vol. 11(6), pages 1-16, March.
    2. Tumminello, Michele & Lillo, Fabrizio & Mantegna, Rosario N., 2010. "Correlation, hierarchies, and networks in financial markets," Journal of Economic Behavior & Organization, Elsevier, vol. 75(1), pages 40-58, July.
    3. L'Her, Jean-Francois & Masmoudi, Tarek & Suret, Jean-Marc, 2004. "Evidence to support the four-factor pricing model from the Canadian stock market," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 14(4), pages 313-328, October.
    4. Vineet Agarwal & Richard J. Taffler & Chenyang Wang, 2025. "Investor emotions and market bubbles," Review of Quantitative Finance and Accounting, Springer, vol. 64(1), pages 339-369, January.
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