An analysis of Stock Market Index Prediction using Valuation Ratios and Market Capitalization

Authors

  • Dr. Sajan Khatri  Assistant Professor, Government Girls College, Datia, Madhya Pradesh, India
  • Dr. Heena Upadhyay  Faculty of Management, IPS Academy, IBMR, Indore, Madhya Pradesh, India
  • Dr. Shailesh Singh Thakur  Faculty of Management, IPS Academy, IBMR, Indore, Madhya Pradesh, India

DOI:

https://doi.org/10.32628/IJSRSET218348

Keywords:

SENSEX, PB Ratio, PE Ratio, Market Capitalization

Abstract

The study hypothesizes that PB Ratio along with Market Size has no significant impact on Market Index i.e. Bombay Stock Exchange benchmark Index, (SENSEX) that PE Ratio along with Market Size has no significant impact on Market Index and that PB Ratio, PE Ratio along with Market Size has no significant impact on Market Index. The data is collected for 19 years from 2000 to 2019 from RBI (India) and BSE benchmark SENSEX Index and three econometric models are constructed separately to find the interactions of PB Ratio, PE Ratio and Market Capitalization on Market Index Values. Our econometric models are strong and robust findings suggest that PB ratio and PE ratio impact the index negatively, whereas market capitalization impacts index very strongly and in positive direction.

References

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International Journal of Scientific Research in Science, Engineering and Technology

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Published

2021-01-30

Issue

Volume 8, Issue 1, January-February-2021

Section

Research Articles

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This work is licensed under a Creative Commons Attribution 4.0 International License.

How to Cite

[1]
Dr. Sajan Khatri, Dr. Heena Upadhyay, Dr. Shailesh Singh Thakur "An analysis of Stock Market Index Prediction using Valuation Ratios and Market Capitalization" International Journal of Scientific Research in Science, Engineering and Technology (IJSRSET), Print ISSN : 2395-1990, Online ISSN : 2394-4099, Volume 8, Issue 1, pp.323-330, January-February-2021. Available at doi : https://doi.org/10.32628/IJSRSET218348