Impact of Automobile Companies Stock Returns on Indian Stock Market Indices with Special Reference to Nifty Fifty Index
Rajani
Dr. Rajani, PhD, Department of Commerce, Dayalbagh Educational Institute, Agra (Uttar Pradesh), India.
Manuscript received on 13 December 2023 | Revised Manuscript received on 23 December 2023 | Manuscript Accepted on 15 January 2024 | Manuscript published on 30 January 2024. | PP: 31-37 | Volume-10 Issue-5, January 2024 | Retrieval Number: 100.1/ijmh.E167610050124 | DOI: 10.35940/ijmh.E1676.10050124
Open Access | Editorial and Publishing Policies | Cite | Zenodo | OJS | Indexing and Abstracting
© The Authors. Blue Eyes Intelligence Engineering and Sciences Publication (BEIESP). This is an open access article under the CC-BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)
Abstract: The Nifty Fifty Index is a free-float market capitalisation-weighted index. It represents the weighted average of the top 50 Indian companies listed on the National Stock Exchange of India. It is one of the leading stock indices used in India, alongside the BSE Sensex of the Bombay Stock Exchange. The Nifty 50 index represents 62% of the free float market capitalization of the stocks listed in the NSE (NATIONAL STOCK EXCHANGE) as on September 30, 2022. sectors’ stocks are performing more consistently and provide high returns with high risk in the NSE (NATIONAL STOCK EXCHANGE, these stocks are emerging as the most reliable stocks in the capital market. The Nifty Fifty Index is also influenced by variations in the Automobile Industry, which occurred due to market fluctuations. The Automobile Sector has influenced by micro and macro indicators So in this, researcher found a relationship between Nifty Fifty Index and different selected Automobile companies by the application of some statistical tools like as regression to examine the impact of different companies stock return on Nifty fifty Index and correlation to check the relationship between Nifty Fifty and Automobile Sector Companies. For this study, data from 18 years, from January 1, 2003, to December 2022, have been collected. After the application of the test, it can be concluded that the Nifty Fifty Index has an impact on the variation of Automobile companies’ stock returns, and the Nifty Fifty Index and Automobile companies are highly positively correlated with each other. At last, it can be recommended that one variable can be used for forecasting another variable. Therefore, it can be concluded that the development of the economy and the capital market has a relationship with the performance of the Automobile Industry in the stock market and its return-generating capacity. This study will be helpful for investors who prefer to invest in the Automobile Sector.
Keywords: Automobile Sector, National Stock Exchange, Regression, Correlation, and Nifty Fifty Index.
Scope of the Article: Business and Marketing