ABSTRACT
The volatility in the Stock market creates the opportunity for the investor and their uncertainties also cause the risk for the investor. Keeping this in mind this chapter has looked in to the volatility and with specific reference to IT Index in Indian stock market. For this purpose we have used the closing price of the BSE-IT Index for estimation of volatility using GARCH are from 1-04-05 to 31-03- 2013. This chapter tries to find out if there is volatility clustering in the BSE IT (Information Technology) index in the stock market using the ARCH/GARCH Model to indicate the volatility in the stock market. The closing prices considered. After fitting the GARCH model in the data, analysis on the findings will he done. Following which the concluding part of the chapter, in which the limitations of this model along with further suggestions will be elucidated. It was found that GARCH 1, 1 has proved the time varying volatility in the IT sector.
