Volume : V, Issue : VI, June - 2015

Impact of Inflation on FMCG Stocks Performance: an Empirical study of HUL and ITC

Uma Shankar, Prof. Himabindu

Abstract :

 Volatility in inflation rate will affect the cost of manufacturing and customer consumption which leads to precariousness in stock price movements. This study investigates the impact of inflation on stock price performance of two Indian behemoth Fast Moving Consumer Goods (FMCG) companies. Monthly inflation rates and stock prices for a period of 10 years starting from 2005 are collected. It is hypothesized that increase in inflation rate will have negative impact on stock prices. The results are mixed. We found a negative and significant relationship between inflation and stock price movements for four years and significant positive relation for three years.

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Article: Download PDF   DOI : 10.36106/ijar  

Cite This Article:

Uma shankar, Prof.Himabindu Impact of Inflation on FMCG Stocks Performance: An Empirical Study of HUL and ITC Indian Journal of Applied Research, Vol.5, Issue : 6 June 2015

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