Impact Of Market Volatility On Stock Return Of Banking Companies In India

The paper investigates relation between NSE-Nifty Bank Index and HDFC, ICICI, Axis, Kotak Mahindra and SBI Banks’ stock return over the eight years calendar period (2009 - 2015) by taking monthly closing returns over the study period. Nifty Bank Index is sector-specific index of NSE and includes leading banking companies from India. The tools used for the purpose of studying this relation include time moving average method and regression model. The result of regression shows that there is very close statistically significant positive linear relationship between Nifty Bank Index and selected Indian banking companies’ stock return.