Impact of Automobile Companies Stock Returns on Indian Stock Market Indices with Special Reference to Nifty Fifty Index

Abstract

The Nifty Fifty Index has a free-float market capitalization-weighted index.it represents the weighted average of the top 50 Indian companies listed on the National Stock Exchange ,and it is one of the main stock indices being used in India, besides the BSE Sensex of the Bombay Stock Exchange. The Nifty 50 index represents 62% of the free float market capitalization of the stocks listed in the NSE (NATIONAL STOCK EXCHANGE) as on September 30, 2022. sectors ‘s stocks are performing more consistently and provide high return with high risk in (NSE)NATIONAL STOCK EXCHANGE,these stocks are emerging as most reliable stock in capital market. Nifty Fifty Index also influenced by the variation in Automobile Industry which happened due to market fluctuation .The Automobile Sector has influenced by micro and macro indicators So in this, researcher found a relationship between Nifty Fifty Index and different selected Automobile companies by the application of some statistical tools like as regression to examine the impact of different companies stock return on Nifty fifty Index and correlation to check the relationship between Nifty Fifty and Automobile Sector Companies. And for this study data of 18 years from 1 January 2003 December 2022 has been taken. After the application of test this can be concluded that nifty fifty Index have impact of Automobile companies’ stock return variation on it and Nifty fifty index and Automobile companies are highly positively correlated with each other. At last it can be recommended that one variable can be used for forecasting another variable. So it can be concluded that development of economy and capital market has a relationship with performance of Automobile Industry in stock market and its return providing capacity. This study is going to be helpful for those investors who prefer to invest in Automobile Sector.