DETERMINANTS OF SHARE PRICE MOVEMENTS : AN EMPIRICAL EVIDENCE FROM NSE COMPANIES WITH SPECIAL REFERENCE TO CEMENT SECTOR

Mrs.M.PUSHPALATHA; Dr.K.BALASUBRAMANIAM

Volume : VI, Issue : IX, September - 2016

DETERMINANTS OF SHARE PRICE MOVEMENTS : AN EMPIRICAL EVIDENCE FROM NSE COMPANIES WITH SPECIAL REFERENCE TO CEMENT SECTOR

Mrs. M. Pushpalatha, Dr. K. Balasubramaniam

Abstract :

A number of studies have been undertaken to identify the share prices movements and its volatility. The extant literature available strongly supports the movement of share price as a consequence of firm specific factors such as dividend, book value, earnings etc. The present study is undertaken with an attempt to determine the share prices movements and its volatility of the selected four companies viz., ACC Ltd., Ambuja Cements Ltd. Grasim Industries Ltd. and UltraTech Cement Ltd. which is in Nifty 50 companies list. The period of the study selected between January 2006 and December 2015. For examining the share price movements and its volatility, the researcher took descriptive statistics like mean, median, maximum, minimum, standard deviation, skewness, kutosis and JarqueBera statistics and for finding the volatility, Augmented Dickey Fuller Test has been used. From the test results, among the selected four cement companies, Ultratech has effective share price movements when compared to other three companies. Further, all the selected four companies, has unit root problem and were not stationary. So, it is recommended that these four companies should take necessary steps to maintain its financial health and increase the market share in India.