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Research Paper | Decision Science | India | Volume 7 Issue 10, October 2018

Effect of IT Stock Prices on NIFTY 50 - An Empirical Analysis on Indian Stock Market

Abhijit Biswas

Abstract: - NIFTY 50 is National Stock Exchange of India's benchmark broad based stock market index for the Indian Equity Market. Full form of NIFTY is National Exchange Fifty. It represents the weighted average of 50 Indian company stocks in 12 sectors and is one of the two main stock indices used in India. This study is an attempt to find the effects of IT stock prices (NIFTY) on NIFTY 50. IT stocks which are enlisted under NIFTY 50 are TCS, WIPRO, Tech Mahindra, INFOSYS and HCL Technologies. We have collected data mostly from i. ) NSE and ii. ) Yahoo Finance. Annual Data (daily data) for the period of 2008-2018 have been utilized. This study employs Regression Analysis, Dropping Variable Analysis, Testing of Parameters, Granger Causality Test, Volatility test with ARCH Model. The study will help the rational investors to understand the trend of NIFTY 50 before investing on it. We used the computer program R GUI and EViews-7 for detailed analysis.

Keywords: NIFTY 50, Multiple Linear Regression, Dropping Variable, Granger Causality Test, ARCH

Edition: Volume 7 Issue 10, October 2018,

Pages: 1394 - 1401