Demonetisation Announcement and Price Movement of Indian Sectoral Indices
M. Babu1, J. Gayathri2, G. Indhumathi3, C. Hariharan4
1Dr. M. Babu, Assistant Professor, Bharathidasan School of Management BSM, Bharathidasan University, Thiruchirappalli (Tamil Nadu), India.
2Dr. J. Gayathri, Assistant Professor, Department of Commerce and Financial Studies, Bharathidasan University, Thiruchirappalli (Tamil Nadu), India.
3Dr. G. Indhumathi, Assistant Professor, Department of Commerce, Mother Teresa Women’s University, Kodaikanal (Tamil Nadu), India.
4C. Hariharan, Ph.D Research Scholar, Bharathidasan School of Management BSM, Bharathidasan University, Thiruchirappalli (Tamil Nadu), India.
Manuscript received on 20 August 2019 | Revised Manuscript received on 30 August 2019 | Manuscript Published on 16 September 2019 | PP: 608-611 | Volume-8 Issue-2S6 July 2019 | Retrieval Number: B11160782S619/2019©BEIESP | DOI: 10.35940/ijrte.B1116.0782S619
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© The Authors. Blue Eyes Intelligence Engineering and Sciences Publication (BEIESP). This is an open access article under the CC-BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)
Abstract: The information about changes in economic policies in a country may influence its stock market. The demonetisation has its impact on various segments of the economy. Thus the study aims to analyse the price movement of Indian sectoral indices around the demonetisation announcements. The daily price returns were tested using GARCH (1, 1) Model and it found that low volatility was found in the post announcement period compared to the pre-announcement period. Thus the present study confirmed that Indian sectoral indices were influenced by the demonetization announcement. Therefore, investors should be aware of economic events while investing in the stock market.
Keywords: Demonetisation, Price Movement, Sectoral Indices, Stock Market Volatility.
Scope of the Article: Marketing and Social Sciences