Vol: 13, Issue: 4 2023

Page: 078-098

Impact of Inclusion and Exclusion in National Index Nifty50 on Stocks Price: A Statistical Study

PVR Subrahmanyam

http://doi.org/10.37648/ijtbm.v13i04.006

This article investigates the impact of stock inclusion and exclusion from the National Index Nifty50 on stock performance. It combines qualitative and quantitative approaches to explore the relationship between financial performance, stock price fluctuations, and the dynamics of the National Index. The article highlights the significance of the National Index as an economic indicator, emphasizing the connection between overall economic performance and the success of enterprises. Utilizing statistical techniques such as the Anova Test, correlation analysis, and regression analysis, the study examines the relationship between stock prices, index prices, and the overall movement of the index. Time series charts are used to visualize stock movements during inclusion and exclusion events. Additionally, the quarterly financial performance of included and excluded stocks is assessed to evaluate their influence on the National Index. Importantly, the study does not aim to predict stock movements or offer investment advice, but instead contributes to the academic understanding of the Indian National Stock Market. By combining qualitative insights with quantitative analysis, this research enhances comprehension of the factors impacting stock price movements and the role of the National Index. The findings provide valuable insights into the relationship between financial performance, stock movements, and the dynamics of the National Index, paving the way for further research in this field.