Equity Risk Premium Expectations in the Indian Capital Market

This paper discusses some of the factors that determine the Equity risk premium expectations of the investors in the Indian Capital Markets and to see the impact of these factors on the ERP. This is crucial for any investor to invest in the capital market and realize its premium expectations in the capital market as compared to the debt market. This is also crucial at the firms end also, as it determines the cost of capital for the firm which further evaluates all the valuations of the firm.