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This paper examines the relationship of stock return patterns on the Bombay Stock Exchange (BSE) with those of the New York Stock Exchange (NYSE). It also examines investment opportunities for international investors. The data include daily closing values of the BSE and SSP 500 Indexes for the period 1979-1990. Parametric and nonparametric tests are utilized. The ESE exhibits seasonalities in stock return patterns. December provides the highest mean monthly return while week 4 has the highest mean weekly return. A weak form of the weekend effect is observed. The relationship of return patterns on the BSE and the NYSE indicates similarity of return patterns for contemporaneous trading. However, the BSE and the NYSE appear to be segmented rather than integrated. This may be explained by the isolation of the ESE, the institutional restrictions on direct trading on the ESE by foreign nationals and foreign exchange controls. A segmented market offers better investment opportunities because of low correlation of returns.