Volume : V, Issue : VI, June - 2015
Relationship between Exchange Rate and Select Information Technology Stocks listed in Bombay Stock Exchange of India
Umashankar, Prof. B. R. Megha Raj
Abstract :
Indian Information Technology companies generate majority of their income from foreign countries. The volatility in exchange rate will have profound impact on their bottom line. This study examines the relationship between exchange rate and stock price of Infosys and Wipro. For this study monthly average close price of sample stocks and exchange rate (USD) are collected for the period 2004 – 2014. Before performing the analysis, closing prices are adjusted for stock splits, bonus and rights issues. Data analysis was performed in two levels. First, we measured the performance of the stock price movements. Second, we run the correlation and regression analysis to understand the association between stock prices and exchange rate. The results indicate that, Weaken Rupee has significant positive relationship with IT stock prices.
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DOI : 10.36106/ijar
Cite This Article:
Umashankar, Prof. B.R.Megha Raj Relationship Between Exchange Rate and Select
Information Technology Stocks Listed in Bombay
Stock Exchange of India Indian Journal of Applied Research, Vol.5, Issue : 6 June 2015
Number of Downloads : 495
Umashankar, Prof. B.R.Megha Raj Relationship Between Exchange Rate and Select Information Technology Stocks Listed in Bombay Stock Exchange of India Indian Journal of Applied Research, Vol.5, Issue : 6 June 2015
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