A study on the factors governing the market price of the select stocks from national stock exchange

Abstract

Stock Exchange is a focal point of primary and secondary market playing a newlinedecisive role in the economy. Stock exchange is a place where buyers and sellers meet newlinefor purchase and sale of shares and securities. The present study analyzed the factors newlinegoverning the market price of selected stocks from national stock exchange. The newlinestudy has been extracted from secondary data and is analytical in nature. The study newlinewas mainly carried out to ascertain to what extent these selected variables have an newlineimpact towards determining the market price of the selected stocks. This study newlineprovides a comprehensive analysis on the relationship between market price per share newlineand Financial Variables (Dividend Per Share, Earnings Per Share, Net Profit Margin, newlineReturn on Assets and Return on Equity) in Limited Sectors for selected 10 companies. newlineThe study examined normality through Descriptive Statistics and stationarity through newlineUnit Root Test Analysis. The present study would also find the relationship between newlinedependent variable and independent variable through correlation analysis. The Impact newlineof Market Price per share and Financial Variables are obtained through Regression newlineTest Analysis. Based on the findings arrived at the suggestions are given by the newlineresearcher in such a way so that the wealth maximization of the shareholders can be newlineaccomplished. The findings of the study states that newline(i) Auto Ancillaries Sector - Bosch, Exide Ind, Minda Ind, Motherson Sumi, Suprajit newlineEngg, TVS, and WABCO that all the variables have reached stationarity. The newlinevariables Dividend per Share, Earnings per Share, Net Profit Margin, Return on newlineAssets and Return on Equity variables are correlated positively for the companies newlineAmara Raj Bhatt, Bosch, Minda Ind, Motherson Sumi, TVS and WABCO India. newline(ii) Banking Sector all the variables of CUB, Federal Bank, ICICI, Indus Ind, KVB newlinehave attained stationarity. In Indus Ind Bank, Kotak Bank, KVB the variables newlinehave attained positive Correlation. newline(iii) Cement Sector - AMBUJA, Birla Corp, JK Cements,