Effect of 2013 Budget’s Announcement on Infrastructure Stocks
INTERNATIONAL JOURNAL OF MARKETING, FINANCIAL SERVICES & MANAGEMENT RESEARCH (IJMFSMR) - Volume 2. No. 2. April-June 2013. ISSN 2277 3622
12 Pages Posted: 9 Jan 2019
Date Written: June 28, 2013
The budget was announced by Finance Minister P Chidambaram on 28th February 2013. There was mounting of expectations from the budget. The mix kind of feelings arrived from the budget. The SMEs, Rural India, infrastructure, textiles, power, port and defense was the focused area. But the reaction of the stock market and key players of the market had some different story of the budget announcement. As the budget announcement start by the Finance Minister, immediately several research reports on budget impact on industries are available on the internet and News paper. Those reports and calls may have a possible impact on various industrial sectors and stocks. This research study mainly focuses on the impact of budget announcement on the infrastructure stocks. The top 10 stocks on the basis of weighted in the CNX infra Index was selected and analyzed. The event study was applied to know the impact of budget announcement on infra stocks. The historical prices for 6 days before and 6 days after the budget announcement were analyzed to know the impact of budget announcement on infra stocks. The abnormal return of stocks was found and paired t test was applied to know the impact of the event.
Keywords: Abnormal Return, CAR, CAAR, ASRV, Paired T Test
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