Major event impacts on s p cnx nifty stocks
Events that affected the indian stock market 2015
Coal India rose 2 per cent whereas Reliance Capital gained 4. The base period for the Nifty index is November 03, In Section 5, we highlight the scope for the future research. But this does not hold true every time. This not only made investing simple, but also provided increased transparency. Indian market Volatility has been shown to be low during periods of growth and high during recessionary periods Kumar, The index is often also impacted by the performance of other global indices. The contribution of the paper is from the perspective of broadening our understanding about impacts of structural changes on the stock market in short run to all market participants, regulators, potential investors and high net worth individuals, fund managers, hedge funds and policymakers. Literature elucidates many studies exploring the impact of structural changes, political effects, dividend proclamations, oil shocks, etc. Weekly data on the above was obtained and studied in the time frame from January to December Inclusion in or exclusion from an index, or a change in its weight in an index, is a strong hint about where a stock is headed , especially in the short term. The linear relationship fitted was used to calculate Indian market Volatility for earlier periods Table I, Eqn 1. One should not consider inclusion or exclusion as the sole trigger to buy or sell a stock, according to experts.
Volatility remained low during periods of significant upside in the stock market but spiked up during market declines. Year-wise trading value of different market segments in national stock exchange of India in Rs.
The Nifty index is computed on a free float methodology from its underlying constituents. In Section 2, we review literature and introduce Indian stock market.
Figure 1. One should instead focus on fundamentals, business model and future prospects of the company before taking a call. Float Adjustment — Companies must have at least twice the float-adjusted market capitalization of whatever is the current smallest index constituent.
This tends to impact market volatility and returns.
based on 90 review