Are Indian Stock driven by pure Sentiments
-
Upload
akash-jauhari -
Category
Business
-
view
942 -
download
0
description
Transcript of Are Indian Stock driven by pure Sentiments
Are Indian Stock Markets Driven More By Sentiments Than By
Fundamentals ?
Alok Mishra,, Akash Jauhari , Karan Verma , Lokesh Chaudhary, Raghav Agarwal , Varun Sehgal
BY
Determinants of Our Research
Fundamentals
• EPS
• Future Cash- flows
• P/E
• Projects in Hand
Market Sentiments
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
ICICI Bankruptcy Reports
• ICICI Bank Share price went down by a whopping 14 percent on 28th Sep, 2008
UPA Wins By Thumping Majority
• On 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.
26/11 Terror Attack on Financial Capital
Share Market resilient on 28/12 as it rises by 2%
Research Design
• Field 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.
Research Objective
•
• To Quantitatively find the
impact of Sentiments on
Stock Markets as compared
to Fundamentals.
Impact News
Result and Conclusion
Change in Stock, observed
Change in BSE
Expected Change in Stock
Application – Kruskal Wallis
Methodology
Methodology
• % Change = (closing – opening) * 100 /opening.
• Theoretical % Change in Stock = (Beta) * (Sensex % Change).
• Comparing Theoretical Change and Actual Change.
• Analysis of Variance of the two samples.
• Non Parametric – Kruskal Wallis Test, a = 5 %