The Sector Chosen for this is the Indian IT Sector and the Companies chosen are Infosys, Wipro, TCS and HCL. The Indian IT Sector is one of the Sunshine Sectors in India. The Indian Information Technology (IT) Industry has played a major role in putting India on the global map and is now slated to become a US$ 225 Billion Industry by 2020.Over the past decade, the Indian IT-BPO sector has become the country’s prime growth engine, achieving quite a few milestone in terms of Revenue Growth, Value Creation and Employment Generation in addition to becoming the Global brand ambassador for India.
The paper tracks the stock market returns before and after the Company specific events like Earnings Guidance Announcement, Bonus Issue and Dividend of the various IT companies of India for the past 5 years. The paper then tries to explain the movement of such stock returns due to the impact of these events and see how volatile the market becomes. The methodology used in the paper is “Standard Event Technique” which is specially used to track event based studies. The metric used is Average Abnormal Return and Average Security Returns Variability.
">Financial markets play an important role in the process of economic growth and development by facilitating savings and channeling funds from savers to investors. There are various factors that influence the functioning of the financial markets. Thus, Stock prices are subjected to fluctuations. These fluctuations can be caused by either any event occurred inside the company or by any macroeconomic factor. This project studies few of the many such events that influences stock market returns.
The Sector Chosen for this is the Indian IT Sector and the Companies chosen are Infosys, Wipro, TCS and HCL. The Indian IT Sector is one of the Sunshine Sectors in India. The Indian Information Technology (IT) Industry has played a major role in putting India on the global map and is now slated to become a US$ 225 Billion Industry by 2020.Over the past decade, the Indian IT-BPO sector has become the country’s prime growth engine, achieving quite a few milestone in terms of Revenue Growth, Value Creation and Employment Generation in addition to becoming the Global brand ambassador for India.
The paper tracks the stock market returns before and after the Company specific events like Earnings Guidance Announcement, Bonus Issue and Dividend of the various IT companies of India for the past 5 years. The paper then tries to explain the movement of such stock returns due to the impact of these events and see how volatile the market becomes. The methodology used in the paper is “Standard Event Technique” which is specially used to track event based studies. The metric used is Average Abnormal Return and Average Security Returns Variability.
