Are Indian Stock driven by pure Sentiments
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This document analyzes whether Indian stock markets are driven more by sentiments or fundamentals. The researchers collected longitudinal data from 2004-2011 on individual stock prices and market indices to quantify the impact of market sentiments versus fundamentals. They identified impactful news events and measured actual stock price changes against expected theoretical changes based on market index movements to see which factor had a greater influence on short-term price fluctuations. Statistical analysis using the Kruskal-Wallis test was conducted to determine if sentiments or fundamentals drove prices to a significant degree.
Are Indian Stock driven by pure Sentiments
- 1. Are Indian Stock Markets Driven More By Sentiments Than By Fundamentals ?Alok Mishra,, Akash Jauhari , Karan Verma , Lokesh Chaudhary, Raghav Agarwal , Varun Sehgal BY
- 3. Future Cash- flows
- 4. P/E
- 5. Projects in Hand
- 7. Settlement Between The Ambani Brothers On June 20, 2005, the news of the settlement between the Ambani brothers boosted investor sentiments and the scrips of RIL, Reliance Energy, Reliance Capital and IPCL made huge gains. This helped the Sensex crossed 7,000 points for the first time
- 8. ICICI Bankruptcy Reports ICICI Bank Share price went down by a whopping 14 percent on 28th Sep, 2008
- 9. UPA Wins By Thumping MajorityOn May 18, 2009, the SENSEX surged 2110.79 points .This event created history in Dalal Street, by being the first ever time that trade had been suspended for an increase in value.
- 11. Research DesignField Study Longitudinal collection of Data ( 2004 – 2011)Secondary Source of Data- BSE, Money Control/ CNBC Units: Individual Stock Prices. RIL, ONGC, TCS, Infosys, L&T, ICICI, Future Grp. Causal and Descriptive Study.
- 12. Research ObjectiveTo Quantitatively find the impact of Sentiments on Stock Markets as compared to Fundamentals.
- 13. MethodologyImpact News Change in Stock, observedChange in BSEExpected Change in StockApplication – Kruskal WallisResult and Conclusion
- 14. Methodology% Change = (closing – opening) * 100 /opening.
- 15. Theoretical % Change in Stock = (Beta) * (Sensex % Change).
- 16. Comparing Theoretical Change and Actual Change.
- 17. Analysis of Variance of the two samples.
- 18. Non Parametric – Kruskal Wallis Test, a = 5 %