Open AccessGovernmental Announcements and Indian Stock Market: Evidence from Indian Manufacturing Sector
Author(s) -
Mahesh Dahal,
AUTHOR_ID,
Joy Das,
AUTHOR_ID
Publication year - 2021
Publication title -
the review of finance and banking
Language(s) - English
Resource type - Journals
eISSN - 2067-2713
pISSN - 2067-3825
DOI - 10.24818/rfb.21.13.02.04
Subject(s) - manufacturing sector , stock market , stock (firearms) , event study , business , government (linguistics) , economic sector , economics , economy , financial system , monetary economics , international economics , engineering , geography , mechanical engineering , linguistics , context (archaeology) , philosophy , archaeology
The Indian Manufacturing sector lags behind in contributing to economic devel- opment, as compared to its peer nations and therefore, to boost the sectorís contribution to the economy and to transform the economy into a cashless economy, the government of India had announced three major steps, Make in India, Demonetization and GST. In the present study using event study methodology, the immediate impact of the announcements on the stock of the companies from the Indian Manufacturing sector is examined and found that the announcement of the Make in India positively ináuenced the security returns. In contrast, negative impact on the security prices is witnessed on the announcement of Demonetization, whereas the GST implementation has no impact.