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This document discusses the impact of financial and global crises on the Indian stock market. It aims to examine the volatility of the Indian stock market due to events like the 2008 subprime crisis, the 2008 Mumbai terrorist attacks, the 2015-16 Chinese stock market turbulence, and Brexit in 2015. The study will use an event study methodology to analyze the deviation of stock returns during crisis periods. It will also perform statistical analysis and regression analysis to compare the stock market between pre-crisis and post-crisis periods. The study seeks to understand how external events influence the Indian market and aid investors in making informed decisions.
New interim
- 1. Impact of financial and global crisis on the Indian stock market BRP Interim presentation Presented by Anil Vishnu B M150013MS
- 2. INTRODUCTION Stock market, generally called yardstick and barometer that respond to political , economic, regional , national & international events. Negative or positive incidence events that occur internally or externally enhance volatility in stock market Negative impact on stock market affect its performance and shatters the confidence of investor The individual investors who are the main participants of stock market are much concerned about their investment in the market.
- 3. MOTIVATION OF STUDY Understanding market fluctuations will help to make more profit from the market and at the same time help to reduce the loss when the market is falling. Studying about the market fluctuation will help you to give you a view about the effect of events on happening around the world .
- 4. PROBLEM STATEMENT Financial and global crisis occurred at various point of time has resulted in volatility in Indian stock market. So it is important for the investors to know the impact of financial & global crisis on the stock market to make correct investment decisions. The study examines impact of financial & global crisis on the Indian stock market.
- 5. OBJECTIVES OF STUDY To examine the impact of the financial and global crisis on the Indian stock market. To find out the volatility of the stock market due to financial and global crisis. To conduct an event study on selected stocks from Indian stock market.
- 6. LITERATURE REVIEW Impact of global financial crisis on stock markets: Evidence from Pakistan and India (Rafaqet Ali, Muhammad Afzal on May 10, 2012) Brexit: Impact on the Indian economy and stock market(B.Rajalakshmy & A. Marcus on 9 sep 2016) Impact of terrorism on Karachi Stock Exchange : Pakistan (Syeda Abeeda Hassan, Dr Atif Mahamood , Dr Ashfaq Ahamed , Syed Fakhar Abbas , 2014) Assessing the influence of Chinese stock market on Indian Stock market (Somnath mukhuti, Prem Kumar Ghosh , 2016)
- 7. EVENTS CONSIDERED Subprime crisis 2008 26/11 Terrorist Attack in Mumbai 2008 Chinese stock market turbulence 2015-16 Brexit 2015
- 8. RESEARCH GAP Market condition is dynamic in nature. New changes will results in structural changes of the current market condition. To know about how this change affected the market. Predicting capability The inter relation between the stocks.
- 9. METHODOLOGY 1. Event study – Analyse any deviation in normal daily stock 3 types of estimation windows ( Pre-event , Event day , Post day) These windows explains overall deviation in stocks Mean adjusted return model. (Excessive return of a sector on particular date) ARit = Rit - E(Rit) (1) E(Rit) = a+ b E(Rmt ) (2) ARIt = (1/N)∑ ARit (3)
- 10. 2. Conventional Statistical analysis Divide the data into Pre and Post crisis period. Mean Median Mode Standard deviation Variance 3. Regression analysis
- 11. DATA Source of data – BSE website, Thomson Reuters Eikon. Sampling Population– Stock indices of companies listed in BSE index. Sampling unit – Indices value of stocks from 6 Sectors. 1.IT 4.Auto-Mobile 2.Pharma 5.Metal 3.Healthcare 6.Finance
- 12. TOOLS FOR ANALYSIS Multi linear regression analysis. T-Test (Hypothesis test)
- 13. TIME LINE OF WORK 20/01/2017-28/01/2017 - Identification of problem for the study 28/01/2017-20/02/2017 - Data collection and finding the tools for the study 21/02/2017 - Interim presentation 22/02/2017-10/03/2017 - Analysis of data based on the tools identified 11/03/2017-20/03/2017 - Reporting the results based on the format required for submission Report submission
- 14. Thank you…….