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Impact of financial and global crisis on the Indian stock market
BRP Interim presentationPresented by
Anil Vishnu BM150013MS
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.
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 .
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.
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.
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)
EVENTS CONSIDERED
Subprime crisis 2008 26/11 Terrorist Attack in Mumbai 2008 Chinese stock market turbulence 2015-16 Brexit 2015
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.
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)
2. Conventional Statistical analysis
Divide the data into Pre and Post crisis period. Mean Median Mode Standard deviation Variance
3. Regression analysis
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.Pharma5.Metal
3.Healthcare 6.Finance
TOOLS FOR ANALYSIS
Multi linear regression analysis. T-Test (Hypothesis test)
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
Thank you…….