Impact of Fundamental Factors on Share Price Movements–A Study on Select Listed Companies of Indian manufacturing industries in Bombay Stock Exchange

Dr. M. Rajesh; K. Bhaskar

Volume : V, Issue : III, March - 2015

Impact of Fundamental Factors on Share Price Movements–A Study on Select Listed Companies of Indian manufacturing industries in Bombay Stock Exchange

Dr. M. Rajesh, K. Bhaskar

Abstract :

Stock market performance is generally considered to be the reflector of financial and economic conditions of a country. There are number of macroeconomic and industry related factors that potentially affect the share price movements of the companies. The primary purpose of this study is to examine the share price variation to specific macroeconomic. The study consists of macroeconomic variables including Market Price of Share (MPS), Purchasing Power Parity (PPP), GDP, Inflation (INFL), Money Supply (M2) and Industrial Production (INP). The study attempts to determine which, if any, of the macroeconomic variables are of use in explaining the variability of share prices of select firms from Indian Industries that are listed in Bombay Stock Exchange. The firms relating to 05 different sectors are selected for this study on the basis of data availability, profitability and performance on the Bombay Stock Exchange. These sectors are Tire, Pesticides, Two wheeler,Tiles and Cotton. The share prices data for the selected firms and economic variables obtained for the maximum period of 5 years.