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Mishra, Shraddha
- Impact of Financial Indicators on BSE Sensex
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Authors
Raj Kumar
1,
Shraddha Mishra
1
Affiliations
1 Faculty of Management Studies, Banaras Hindu University, Varanasi, Uttar Pradesh, IN
1 Faculty of Management Studies, Banaras Hindu University, Varanasi, Uttar Pradesh, IN
Source
Journal of Commerce and Accounting Research, Vol 2, No 4 (2013), Pagination: 51-56Abstract
Risk and uncertainties are synonymous to investment in the stock market. Evaluating equities or equity market is open-ended terminology in the financial market. This is a debatable issue among economist and investors. Valuation of equity ultimately depends on one's own perceptions on evolving variables of a country. An investor has to make an apt decision on buying or selling of the shares by examining various financial indicators in the market which influence the market index.
The present study makes an attempt to examine the relationship between the market price and selected four variables namely EPS, priceearnings ratio, price to book ratio, and dividend yield in BSE sensex. Understanding the impact of various financial indicators on market price index is very much fruitful to investors as it will help them in making profitable investment decisions. The necessary information is collected by using PROWESS online database provided by the Centre for Monitoring Indian Economy (CMIE). The tenure considered in study is twelve years i.e. 2000-2012. The scope of the study is confined only to selected explanatory variables in BSE sensex. Correlation, regression, and ANOVA are used for analyzing the relationship between the market price and selected independent. The finding suggests that Earning Per Share (EPS) and Price to Book Value (P/B) are behaving as a significant factor at 0.05 level of significance. Moreover, other independent variables such as Price Earnings ratio (P/E) and Dividend Yield (Yield) seems to be statistically insignificant in explaining the market price index.
Keywords
Market Index Price, Explanatory or Independent Variable, Equity Shares, BSE Sensex
References
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- Abnormal Returns and Impact of Information of Natural Disaster on the Indian Stock Market
Abstract Views :114 |
PDF Views:0
Authors
Affiliations
1 Assistant Professor, IILM University, Gurugram, Haryana, IN
2 Associate Professor, IILM University, Gurugram, Haryana, IN
3 Research Scholar, Department of Commerce, Delhi School of Economics, University of Delhi, Delhi, IN
1 Assistant Professor, IILM University, Gurugram, Haryana, IN
2 Associate Professor, IILM University, Gurugram, Haryana, IN
3 Research Scholar, Department of Commerce, Delhi School of Economics, University of Delhi, Delhi, IN
Source
Journal of Commerce and Accounting Research, Vol 10, No 3 (2021), Pagination: 25-35Abstract
The capital market responds to precedent and unprecedented events. These events play an important role in market efficiency. The purpose of this paper is to elaborate the state of the stock market due to the recurring landslides in the Uttarakhand region in India. This study will help to determine the loss faced by the companies in the Indian stock market. Hence, analysing the “shock due to the natural disaster” in the stock market is an important issue. The study is based on secondary sources of information about various landslides in India. To calculate the “shock due to the natural disaster” in the stock market, we have employed event study methodology to measure this impact. The paper finds that a negative shock is brought by this catastrophic disaster on the Indian stock market. The impact of this shock is on each and every industry in the market; however, the most significant impact is felt by the top companies in the various industries. The market has shown a negative trend in its abnormal returns on and after the event day. Conversely, as the news of relief programmes were released by the government after three or four days, the market again started becoming normal.Keywords
Natural Disaster, Indian Stock Market, Event Study, Cumulative Abnormal ReturnReferences
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- Reaction of Precedented and Unprecedented Events on the Indian Stock Returns
Abstract Views :111 |
PDF Views:0
Authors
Affiliations
1 Professor, IILM University, Gurugram, Haryana, IN
2 Associate Professor and Director, Symbiosis Centre for Management Studies, Bengaluru, Symbiosis International (Deemed University), Pune, Maharashtra, IN
3 Assistant Professor, IILM University, Gurugram, Haryana, IN
1 Professor, IILM University, Gurugram, Haryana, IN
2 Associate Professor and Director, Symbiosis Centre for Management Studies, Bengaluru, Symbiosis International (Deemed University), Pune, Maharashtra, IN
3 Assistant Professor, IILM University, Gurugram, Haryana, IN
Source
Journal of Commerce and Accounting Research, Vol 11, No 2 (2022), Pagination: 1-17Abstract
The purpose of the research paper is to study the market dynamics of Sensex, the share index in Mumbai, India, and its performance pre-election and post-election, which are considered to be precedented events, and during natural disasters and terrorist attacks, which are unprecedented developments. This paper has measured the impact of six positive and negative events on the Bombay Stock Exchange’s 30 share index Sensex. The data is collected from secondary sources focusing on time periods before the dates of the event and time periods after the event. Event study methodology was used to prove the impact of the event on the Indian indices. The study aims to ascertain whether the impact of these events on the indices were significant or not. The application of this study is in terms of clarity to retail investors in the short run, when market may be volatile in terms of prices and returns. Some of the investors may be swayed by projections of election outcomes or other unprecedented events and may try to time the market during that time period. The long-term investor may look at their financial goals and risk profile while choosing stocks for their portfolio, rather than being influenced by swings in the markets.Keywords
Election Day, Lognormal Model, Market Sentiment, Volatility Effects, Efficient Market Hypothesis, Event Study MethodologyReferences
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