Visualizing the Indian Stock Market: a Complex Networks Approach

This paper analyses the top-level structure of the Bombay Stock Exchange using a complex networks framework. The market is visualized as a network, consisting of stock prices as its nodes, and their dynamic interactions being reflected in the edges. The edges used here, signify cross-correlations between any two stocks and take into account the time-lagged interdependence on each other. By processing the empirical data in hand, modular communities are identified. These are used to analyze the dynamics of the network, and give an insight to the trends generally observed in the market.