Delving into the Bubble Detection of Specific NSE Sector Indices

This study meticulously examines market bubbles within specific sectors of the National Stock Exchange (NSE) over the period from January 2017 to December 2023, employing robust methodologies like RADF, SADF, and GSADF tests. The analysis, centered on 11 sectoral indices, integrates GSADF values with RADF and SADF, offering nuanced perspectives that underscore the sector-specific nature of bubbles. Notably, the study highlights bubble occurrences during the 2020 global crisis due to pandemic, emphasizing their dynamic and diverse manifestations amid the pandemic. Exclusive identification of bubbles in NSE IT, NSE Metal, and NSE Pharma enriches the strategic insights available to investors, facilitating informed decision-making and risk management. The sector-wise approach contributes to a holistic understanding of market dynamics, providing investors with valuable tools to navigate the intricacies of the financial landscape. Future research avenues may delve into regulatory impacts on sector-specific bubbles and explore the interplay between macroeconomic indicators and sectoral bubbles, offering deeper insights into market dynamics.