Linkages and Volatility Effect of Finance Companies Stock Price on BSE Finance Index

High Technology Letters, 2020

15 Pages Posted: 29 Oct 2020

See all articles by Baranidharan S

Baranidharan S

SRM Institute of Science and Technology; SRM Institute of Science and Technology; SRM Institute of Science and Technology

A. Sathish

Alagappa University

Date Written: August 28, 2020

Abstract

n India, Finance sector act as a booster to boost up the Indian economy. The main purpose of the analytical work is to scrutinize the mobility of stock price in BSE Indices and the selected Finance companies. The current work has made by observing the data from the period of 2nd April 2014 to 30 August 2019 and employed the statistical tools such as Augmented Dickey Fuller test, GRACH Model and Johansen Co integration Rank Test from the sources such as www.bseindia.com. The present research work selected the sample as Bombay stock exchange SENSEX and Bombay stock exchange FINANCE and the companies of financial sector such as AB CAPITAL LTD, BAJAJ FINSERV LTD, CAPRI GLOBAL CAPITAL LTD, IIFL FINANCE LTD, JSW HOLDINGS LTD and JM FINANCE LTD. The study revealed that there were significant changes in the stock returns of BSE SENSEX and BSE FINANCE reflected on the stock prices of selected companies of the finance industry. Thus the research work helps the institutional investors to aware about identify the volatility of stocks shock, existence in long run association of stocks, and also control the overwhelmed speculation in the stock market. The current work also supports and the motive of policy makers or regulators such as SEBI, RBI provide guidelines and to create aware the policies in order to the individual investors investment. The study also supports and aids to the investors to do further research regarding the change or movement of financial companies stock price in Indian stock market.

Keywords: Economic, Investment, Inflation, Price, Institutional Investor, Investment Decision, Policy.

JEL Classification: A1, D25, P22, E31, G23, G11, F68

Suggested Citation

S, Baranidharan and Sathish, A., Linkages and Volatility Effect of Finance Companies Stock Price on BSE Finance Index (August 28, 2020). High Technology Letters, 2020, Available at SSRN: https://ssrn.com/abstract=3688003

Baranidharan S (Contact Author)

SRM Institute of Science and Technology ( email )

Kattankulathour
Potheri
Chennai, TN Tamilnadu 603203
India

SRM Institute of Science and Technology ( email )

Kattankulathour
Potheri
Chennai, TN SRMIST 603203
India

SRM Institute of Science and Technology ( email )

Mahatma Gandhi Road, SRM Nagar
Potheri, Kattankulathur, Kancheepuram District
Chennai, TN Tamil Nadu 603203
India

A. Sathish

Alagappa University

Karaikudi, Tamil Nadu
India

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