Contagion Effect of Automobile Companies Stock Returns on Indian Stock Market

IPE Journal of Management, Volume 10 No. 1 january-june 2020

Posted: 9 Apr 2021

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

Date Written: 2020

Abstract

As Indian automobile sector stocks are more admirable and consistent traded stocks and commodities in the benchmark of Bombay stock exchange, these stocks are emerging as one of the dominant sector in the capital market. The research data obtained from the period 1st January 2009 to 31st December 2019. The research paper has evaluated the collected data by employed the statistical tools like Descriptive statistics (Normality), Correlation (degree of relationship), regression (impact) and Granger Causal test (causal effects). The study found that presence of normality of selected variables and also Correlation result revealed BSe Indices and selected companies in automobile industries are correlated and therefore development of one can be predicted by the development of other. This indicates that economic trends and development of the country are directly related by the performance of auto sector and its return in the Stock market. It suggests the investors who preferring to invest their investment in the automobile company to get the high return where the risk is high.

Keywords: Automobiles, Economic, Financial Investments, Industry Investment Decision

Suggested Citation

S, Baranidharan, Contagion Effect of Automobile Companies Stock Returns on Indian Stock Market (2020). IPE Journal of Management, Volume 10 No. 1 january-june 2020, Available at SSRN: https://ssrn.com/abstract=3705899

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

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