FIRM PERFORMANCE AND ITS IMPACT OF STOCK PRICEEVIDENCE FROM INDIAN BANKING SECTOR

Abstract

The following research conducts the analysis of banking performance which was listed in NSEand for that earnings per share and share price of both public and private sector banks was taken into consideration. While conducting the study, we can determine the descriptive, correlation and Regression analysis of both earnings per share and share price of each bank and finally we can compute the regression analysis of overall banks in order to accept or reject the hypothesis. For that, the independent variable and dependent variable is picked and finding whether variables are getting linked with other or not and by that we can judge whether it brings impact to the banks by using each dependent variable. Moreover, this study is taken because the financial markets comprise the equity market and the debt market where corporate companies and government collects long-term funds which plays a significant role in economic development that stimulates capital investment which promotes economic growth. Through pooling money, exchanging liability, shifting resources, equity markets act as a facilitator between savers and consumers of capital whereas the stock is the proof of ownership since investor has committed any sum of capital to a stock. However, the aim of this analysis is to provide proof from the Indian banking sector in the Nifty bank market while a few recent studies investigate the effectiveness of Indian banks and none of them explores the relation between output and share output in the Nifty banking industry and several studies suggests that the relationship of share price adjustments and performance metrics represent the cash flows and earnings which exposed the facts that the earnings represent the share price facts.