An Empirical Analysis of Stock Market Volatility in India Using GARCH Models

The study analyses stock market volatility in India, including the NIFTY 50 index. The research problem is grounded in the reality that stock price movements and uncertainties are growing and threaten investment decisions and portfolio management and are a concern at the macro level of the economy (financial stability). In a significant part, the main aim of this study is to explore the volatility patterns and, at the same time, to find out how different variables (e.g., the volume of trading, currency price fluctuations, and the performance of major stock markets in the world) relate to one another to influence the stock market. The quantitative research approach used in the article will rely on second-hand information obtained from official and genuine sources, including the NSE, RBI, and Yahoo Finance, during the period of 1st April 2024 to 31st March 2025. Econometric techniques such as the GARCH (1, 1) model and the EGARCH model determine the underlying volatility differentials. The correlation regression of the Augmented Dickey-Fuller (ADF) test, the Granger causality tests are also performed to check the stability of the data and to examine the relations between the variables. The study finds that the stock market volatility in India is changing rapidly, and the key drivers of the domestic and international major markets, which means that there is a high need to develop advanced stock market models to devise strategies for reducing risks efficiently.