A Comparative Study on the Share Price Movement of Public and Private Banking Sector Companies with Reference to Nifty Bank

Abstract

Investment in securities market is a lucrative opportunity to make best return and to protect our saving from the threat of inflation. Securities market is the one of the most complex avenue of investment which constitutes thousands of securities. NSE was the first exchange in the country to provide a modern, fully aut omated screen-based electronic trading system which offered easy trading facility to the investors spread across the length and breadth of the country. Currently more than 1300 securities are available for trading on the Exchange. It owns a separate sectoral index for banking companies named as NIFTY Bank Index, which constitutes 12 banks from private and public sector. Selection of securities for investment is a crucial work which requires in depth study and better awareness regarding share price movements. This study intends to conduct a technical analysis on price movement of selected 5 shares of banking companies through which the investors can get better understanding while taking investment decision. As it is an analytical research, secondary data has used for the study. Tools used for this are correlation, Trend lines and Market Indicators. Further the study analyzed the market volatility by using mean, standard deviation and correlation using the opening and closing prices and monthly average prices. Demonetization announced by the central Govt. on 8th Nov 2016 raised a big controversy in the nation regards its impact. A number of scams related to banking sector in the form of non repayment of huge loans by corporate were also come into the news after the date of demonetization. In the light of all these, this study attempts to check and study the performance of stock prices of banking sector companies and its volatility during the period starts from 8th Nov 2016 to 24 Aug 2018.