This paper investigates the weak-form market efficiency of Chinese and Indian equity markets by testing the random walk hypothesis, with a focus on the effects of the 2008 global financial crisis and the 2015 Chinese crisis. Using daily return data from the Shanghai Stock Exchange Composite Index and Bombay Stock Exchange (BSE200) over 20 years, the study divides the sample into four sub-periods: pre-crisis (period-I), during the 2008 recession (period-II), post-recession to pre-2015 crisis (period-III), and from the 2015 crisis onward (period-IV). The methodology employs a combination of auto-correlation tests, runs tests, and Augmented Dickey-Fuller unit root tests to assess randomness and efficiency across the entire period and each sub-period.

The findings reveal that both markets do not exhibit weak-form efficiency, as they fail to follow a random walk overall and in the first three periods (1996-2015), indicating that the 2008 recession had a limited impact on market efficiency. However, the study notes an increasing trend in efficiency percentages after the 2008 crisis, suggesting some improvement over time. The results are consistent across all statistical tests, providing robust evidence of inefficiency, which has implications for investors seeking diversified portfolios in these emerging markets. The paper contributes to the understanding of market dynamics in rapidly integrating global economies and highlights the need for further research into crisis-driven efficiency changes.