This paper examines the weak form efficiency of Indian capital market. For this, two tests, namely the runs test and serial correlation test have been applied. The study is based on stock price daily data for three years from January 2001 through December 2003. The results of the runs test have given a clear-cut inkling of the existence of weak form market efficiency in the Indian securities market. Similarly, the serial correlation analysis based on its coefficients confirms the weak form hypothesis of efficient market. This finding, thus, reduces the probability of continuously making extra profits by forecasting the security prices.
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