An Event Study Analysis of India Cements Share Price in NSE With Reference to IPL

Abstract

The investors invest their savings in any of the company’s stock with an intention to earn returns in future. The investors buy and sell shares by carefully analysing the price fluctuations of the company. An event which has an impact on the company, which leads to price fluctuations. One such event identified has been IPL and due to that event, there has been effect on share price of India Cements Limited. By applying the event study methodology, the share price movements can be measured effectively. The major objective of this study is to analyse the average return and risk of India Cements Limited and to study the impact of IPL on India Cements by applying Event study tools. The paper deals with the Event study analysis of India Cements share price in NSE with reference to IPL. Our research intention is to test 41 days share price in NSE website in order to ascertain the behaviour of stock returns during that specific period. For this study we examined the announcement of IPL date by comparing the results, before and after the 20 days of the IPL announcement date. The secondary data has been used for this study. The authors suggest that it has been safe for the investors to invest in India Cements share because the market has been less volatile in that period. It can be concluded that share investment requires keen analysis on the value of money flow, averages and returns in order to choose better investment options.