5.IMPACT OF SELECTED MACRO ECONOMIC FACTORS

ABSTRACTS

The study mainly concentrates on certain sectors and certain companies.The study would

be helpful for the investors for making prudent investment. The companies are selected based on

market capitalisation of the shares.The major macro –economic factors are taken in to

consideration.

The main objective is to To study the share price movements in certain sectors like

Cement, InformationTechnology,Telecom,Auto,FastMovingConsumerGoods,Infrastructure,

Media, Power due to the impact of certain Macro-economic factors like

Inflation,CallMoneyRate, Sensitivity Index,Dollar Value,Deposit Rate,Investments by Foreign

Institutional Investors.

In this research study about the analysis of share price fluctuations in the equity

market with certain factors, Descriptive research is used to obtain information concerning the

current status of the phenomena to describe "what exists" with respect to variables or conditions

in a situation. The methods involved range from the survey which describes the status quo, the

correlation study which investigates the relationship between variables, to developmental studies

which seek to determine changes over time

Data that have already been collected for some purpose other than the current

study.Secondary data for conducting this research study has been collected from various

marketing research books,company brouchures,statistical books, journals, magazines,reports and

publications of various associations connected with business, and industry,stock exchanges etc,

public records and statistics, historical documents and other sources of published information,

and through literature review

A. Population: All the companies in the equity market listed in National Stock Exchange.

B. Sampling Method: In this study, purposive sampling method is used, a type of non

probability sampling, where the researcher purposively chooses the particular units of the

universe for constituting a sample on the basis that the small mass that they so select out of a

huge one, will be typical or representative of the whole.

C. Sample Media: Sample media for the present research is based on the market capitalisation

of shares.

D. Sample Unit: Each and every company in the equity market listed in national stock

exchange has been treated as the sample unit by the researcher.

E. Sample Size: Eight sectors, each with three companies, having a sample size of 24 has been

decided by the researcher.

Tools of analysis for this study are,

1.Regression coefficient : Regression coefficient is used to learn more about the relationship

between several independent variables and a dependent variable.

2.ANOVA :ANOVA (F test) is used since there are more than two independent variables.

3. t Test : To know the specificity that is which independent variable has an impact on share

price movement) t test is used.

The present study attempted to analyse the impact of selected macro economic factors

like Inflation,Call Money Rate,SENSEX,Dollar value,Deposit Rate,investment by FII on share

price movements of selected companies in certain vital sectors namely Cement,Information

Technology, Telecom, Auto,FMCG,Infrastructure,Media and Power.The companies are selected

based on market capitalisation of the shares.

The results and findingsof the research study clearly exemplifies the fact that an indepth research

study has been conducted and all the objectives set for this research work has been fully

accomplished and analysis also has been performed to the maximum extent possible.

The study says that Sensex is the major factor having an impact on the share price

variations in Cement,IT,Auto,FMCG Sectors. FII has an impact on the share price movements in

Cement and IT Sectors. Inflation and Dollar value have an impact to certain extent on on the

share price movements in IT Sector. Call Money Rate and Dollar value have an impact to certain

extent on on the share price movements in Auto Sector. The share price movements of

Telecom,Infrastructure,Media,Power Sector does not have an impact on the Macro-economic

factors.Further studies can be made by taking many other factors in to consideration.In order to

make the investment profitable ,various recommendations has also been put forth in this research

study.