Arbitrage Opportunities: Evidence from Indian Capital Market

This study examines potential arbitrage opportunities between the Bombay Stock Exchange (BSE) and the National Stock Exchange of India (NSE) using a comparative analysis of 50 common-listed companies. Considered daily stock prices for the study period from 2021 to 2025 and these are evaluated by using 14 parameters which explains about comprehensive statistical and comparative analysis to evaluate the return behavior, risk characteristics, market relationship, price alignment and potential cross-exchange arbitrage opportunities between BSE and NSE. The Result shows that there is high market integration with a strong 0.812618 mean correlation. NSE showed higher average returns in 31 companies, while BSE exhibited greater volatility in 28. Potential Buy BSE/Sell NSE opportunities were identified in 40 companies, and the reverse in 10. Overall, the results confirm high market integration and efficiency, with limited cross-exchange differences reflecting market microstructure conditions and also provides useful implications for Broker, institutional traders, exchanges and securities-market regulators.