"A Study on Impact of Quarterly Results of Top Six Companies Share Price"

1

A

Project Report

On

“A Study on Impact of Quarterly Results of Top Six

Companies Share Price”

Submitted To:

Bhulabhai Vanmalibhai Patel Institute of

Business Management, Computer &

Information Technology,

Uka Tarsadia University

Submitted By:

Patel Heniben V

TY BBA (Finance)

Enrollment No.: 201303100310022

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INDEX

Ch.

No Topic

Page

No

Executive Summary

Synopsis

1 Introduction

2 Literature Review

3 Research Methodology

4 Data Analysis and Interpretation

5 Findings and conclusion

6

References

Bibliography

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ACKNOWLEDGEMENT

I wish to express my sincere thanks to Dr. Poonam Mittal, Director of Bhulabhai

Vanmalibhai Patel Institute of Business Management, Computer & Information

Technology, Uka Tarsadia University who gave me the chance to do this project report.

I wish to express my heartfelt gratitude to my internal guide Mr. Nisarg Shah whose

constant help and support at all stages of this project has enabled me to complete it.

Last but not least, I thank all those who have helped me directly or indirectly during the

course of this project.

Patel Heniben V

13BBA22

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DECLARATION

I, Patel Heniben Vijaybhai from Bhulabhai Vanmalibhai Patel institute of Business

Management, Computer, & Information Technology, hereby declare that the project

report has been undertaken as a part of 6th Semester of Bachelor of Business

Administration (BBA) syllabus of Uka Tarsadia University, Bardoli. I declare that this

report has not been submitted to any other university or institute for any other purposes.

Place: Gopal Vidyanagar Patel Heniben V.

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EXECUTIVE SUMMARY

As a part of BBA curriculum, I have made this report on the topic of “ A Study on Impact

of Quarterly Results of Top Six Companies Share prices”, stock market is always

determined on predication and company’s fundamentals. The present study is based on

company’s fundamental which impact on share prices.

Here, the study shows that when company published its quarterly results that impact on

company’s stock prices but there are so many speculation spread in the market that’s why

company stock price is determine by the fundamentals or it negativity react on company’s

fundamentals.

The concept of this project is to check the performance of top six companies. To study the

relationship between share price before and after quarterly results. The performance can

be evaluated by doing comparison between quarter-1 and quarter-2 results and quarter-3

and quarter-4 results.

In statistical tools, the project also includes objectives of study, research methodology,

data analysis and interpretation, findings and conclusion, recommendation and

bibliography.

In this study “Descriptive Research Design” is used because it is based on some previous

understanding of the topic, and research has got a specified objectives and clear cut data

requirements.

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List of Chart

Sr. No Title Pg. No

4.1 Generate comparison of Q1 and Q2 net profit and

share price of Coal India Ltd


share price of Infosys Ltd


share price of ITC Ltd


share price of ONGC Ltd


share price of Reliance Industry Ltd


share price of TCS Ltd


share price of Coal India Ltd


share price of Infosys Ltd

4.9 Generate comparison of Q3 ad Q4 net profit and share

price of ITC Ltd


share price of ONGC Ltd


share price of Reliance Industry Ltd


share price of TCS Ltd

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List of Tables

Sr. No Title Pg. No

4.1 Closing price data of Q1 Coal India Ltd (for the year

2015-2016)

4.2 Generates paired T-test of Q1 Coal India Ltd (for the year

2015-2016)

4.3 Closing price data of Q1 Infosys Ltd (for the year 2015-

2016)

4.4 Generates paired T-test of Q1 Infosys Ltd (for the year

2015-2016)

4.5 Closing price data of Q1 ITC Ltd (for the year 2015-2016)

4.6 Generates paired T-test of Q1 ITC Ltd (for the year 2015-

2016)

4.7 Closing price data of Q1 ONGC Ltd (for the year 2015-

2016)

4.8 Generates paired T- test of Q1 ONGC Ltd (for the year

2015-2016)

4.9 Closing price data of Q1 Reliance Industry Ltd (for the

year 2015-2016)

4.10 Generates paired T-test of Q1 Reliance Industry Ltd (for

the year 2015-2016)

4.11 Closing price data of Q1 TCS Ltd (for the 2015-2016)

4.12 Generates paired T-test of Q1 TCS Ltd (for the 2015-

2016)


2015-2016)


2015-2016)


2016)


2015-2016)



2016)


2016)


2015-2016)


year 2015-2016)


the year 2015-2016)



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2016)


2015-2016)


2015-2016)


2016)


2015-2016)



2016)


2016)


2015-2016)


year 2015-2016)


the year 2015-2016)



2016)


2014-2015)


2014-2015)


2015)


2014-2015)



2015)


2015)


2014-2015)


year 2014-2015)


the year 2014-2015)



2015)

4.49 Represent comparison of Q1 and Q2 net profit and share

price of Coal India Ltd

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price of Infosys Ltd


price of ITC Ltd


price of ONGC Ltd


price of Reliance Industry Ltd


price of TCS Ltd


price of Coal India Ltd


price of Infosys Ltd


price of ITC Ltd


price of ONGC Ltd


price of Reliance Industry Ltd


price of TCS Ltd

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1.1 Introduction

Most of the trading in the Indian stock market takes place on its two stock exchanges: the

Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). The BSE has

been in existence since 1875. The NSE, on the other hand, was founded in 1992 and

started trading in 1994. However, both exchanges follow the same trading mechanism,

trading hours, settlement process, etc. At the last count, the BSE had about 4,700 listed

firms, whereas the rival NSE had about 1,200. Out of all the listed firms on the BSE, only

about 500 firms constitute more than 90% of its market capitalization; the rest of the

crowd consists of highly illiquid shares. NSE enjoys a dominant share in spot trading,

with about 70% of the market share, as of 2009, and almost a complete monopoly in

derivatives trading, with about a 98% share in this market, also as of 2009.

A stock exchange is a form of exchange which provides services for stock brokers and

traders to trade stocks, bonds, and other securities. Stock exchanges also provide facilities

for issue and redemption of securities and other financial instruments, and capital events

including the payment of income and dividends.

Securities traded on a stock exchange include stock issued by companies, unit trusts,

derivatives, pooled investment products and bonds. Stock exchanges often function as

"continuous auction" markets, with buyers and sellers consummating transactions at a

central location, such as the floor of the exchange.

Corporate governance refers to the set of systems, principles and processes by which a

company is governed. They provide the guidelines as to how the company can be directed

or controlled such that it can fulfill its goals and objectives in a manner that adds to the

value of the company and is also beneficial for all stakeholders in the long term.

Stakeholders in this case would include everyone ranging from the board of directors,

management, shareholders to customers, employees and society.

The management of the company hence assumes the role of a trustee for all the others. A

listing contract is a contract between a real estate broker (their agent representatives,

acting in the broker's name) and a seller or sellers of real property to give the broker the

right to offer the property for sale. As per the listing agreement every company has to

report the quarterly results within one month from the end of the quarter.

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The objective of interim reporting is to inform the position of the company to its investors

or shareholders. Timely and reliable interim reporting improves the ability of investors,

creditors and others to understand an enterprise capacity to generate earnings and cash

flows, its financial condition and liquidity. Based on the information available front the

results the investors can take informed decisions. However, on many occasions, the paces

of the securities have not changed to the extent of rise or fall in profit reported in the

quarterly results. Hence there is a need to know the real impact of quarterly results on

share price movement of securities.

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1.2 What is stock market?

A stock market or equity market or share market is the aggregation of buyers and sellers

(a loose network of economic transactions, not a physical facility or discrete entity)

of stocks (also called shares); these may include securities listed on a stock exchange as

well as those only traded privately.

1.3 Function of stock market

Primary Market

The primary market is where securities are created. It's in this market that firms

sell (float) new stocks and bonds to the public for the first time. For our purposes,

you can think of the primary market as being synonymous with an initial public

offering (IPO). Simply put, an IPO occurs when a private company sells stocks to

the public for the first time.

Secondary Market

The secondary market is what people are talking about when they refer to the

"stock market". This includes the New York Stock

Exchange (NYSE), Nasdaq and all major exchanges around the world. The

defining characteristic of the secondary market is that investors trade among

themselves. That is, in the secondary market, investors trade previously issued

securities without the issuing companies' involvement. For example, if you go to

buy Microsoft stock, you are dealing only with another investor who owns shares

in Microsoft. Microsoft (the company) is in no way involved with the transaction.

The secondary market can be further broken down into two specialized

categories: auction market and dealer market.

In the auction market, all individuals and institutions that want to trade securities

congregate in one area and announce the prices at which they are willing to buy

and sell. These are referred to as bid and ask prices. The idea is that an efficient

market should prevail by bringing together all parties and having them publicly

declare their prices. Thus, theoretically, the best price of a good need not be

sought out because the convergence of buyers and sellers will cause mutually-

agreeable prices to emerge. The best example of an auction market is the New

York Stock Exchange (NYSE).

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In contrast, a dealer market does not require parties to converge in a central

location. Rather, participants in the market are joined through electronic

networks (from low-tech telephones or fax machines to complicated order-

matching systems). The dealers hold an inventory of the security in which they

"make a market". The dealers then stand ready to buy or sell with market

participants. These dealers earn profits through the spread between the prices at

which they buy and sell securities. An example of a dealer market is the Nasdaq,

in which the dealers, who are known as market makers, provide firm bid and ask

prices at which they are willing to buy and sell a security. The theory is that

competition between dealers will provide the best possible price for investors.

1.4 Characteristic of stock market

Volatile: The stock market can undergo wild swings, rising and falling by

hundreds of points, with many stocks posting steep gains or losses based on

factors having nothing to do with their performance. Interest rate changes by the

Fed, housing or employment reports, legislative action and natural disasters all

can affect the stock market.

Regulated: Federal regulations and oversight by the Securities and Exchange

Commission help keep the stock market fair and transparent. For example, most

companies that issue stock must release quarterly earnings reports, while investors

who buy large blocks of stock must report their intentions. Individual trades must

meet specific parameters and certain players in the stock market, such as certain

types of stockbrokers, must be licensed.

Transparent: A variety of reporting services provide real-time quotes, last-price

quotes, volume and other data. At the end of each day, you can see how many

shares of a particular stock traded, its high and low price and other information.

As previously mentioned, most publicly traded companies must release detailed

quarterly earnings reports as well as annual reports.

Accessible: For many decades, stock market trades were made by professional

floor traders who worked for large brokerage houses. Today, any adult with a

computer may buy and sell stocks online or find a personal broker to place trades

for him. Online trading accounts are free to open; the broker through which you

open an account takes a small fee per trade. Online trading accounts provide small

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investors with real-time data about the market and offer a variety of additional

resources to help you research stocks, sectors, trends and other factors that can

help in making investing decisions.

Fraud: Not all securities sold on the stock market are regulated in the same way.

Small businesses that cannot get listed on the big exchanges such as the New York

Stock Exchange or the Nasdaq may still sell shares. These businesses provide less

public disclosure and are riskier and more subject to fraud. The common “pump

and dump” scheme involves fraudsters buying shares of a penny stock, promoting

them to unsuspecting investors to drive up the price, then selling the stock to make

a quick profit, leaving the other investors holding stock that inevitably crashes.

1.5 Stock exchange market

A stock exchange or bourse is an exchange where stock brokers and traders can buy

and/or sell stocks (also called shares), bonds, and other securities. Stock exchanges may

also provide facilities for issue and redemption of securities and other financial

instruments, and capital events including the payment of income and dividends. Securities

traded on a stock exchange include stock issued by listed companies, unit

trusts, derivatives, pooled investment products and bonds. Stock exchanges often function

as "continuous auction" markets, with buyers and sellers consummating transactions at a

central location, such as the floor of the exchange.

1.6 Functions of stock exchange

Economic Barometer: A stock exchange is a reliable barometer to measure the

economic condition of a country. Every major change in country and economy is

reflected in the prices of shares. The rise or fall in the share prices indicates the

boom or recession cycle of the economy. Stock exchange is also known as a pulse

of economy or economic mirror which reflects the economic conditions of a

country.

Pricing of Securities: The stock market helps to value the securities on the

basis of demand and supply factors. The securities of profitable and growth

oriented companies are valued higher as there is more demand for such securities.

The valuation of securities is useful for investors, government and creditors. The

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investors can know the value of their investment, the creditors can value the

creditworthiness and government can impose taxes on value of securities.

Safety of Transactions: In stock market only the listed securities are traded and

stock exchange authorities include the companies names in the trade list only after

verifying the soundness of company. The companies which are listed they also

have to operate within the strict rules and regulations. This ensures safety of

dealing through stock exchange.

Contributes to Economic Growth: In stock exchange securities of various

companies are bought and sold. This process of disinvestment and reinvestment

helps to invest in most productive investment proposal and this leads to capital

formation and economic growth.

Spreading of Equity Cult: Stock exchange encourages people to invest in

ownership securities by regulating new issues, better trading practices and by

educating public about investment.

Providing Scope for Speculation: To ensure liquidity and demand of supply

of securities the stock exchange permits healthy speculation of securities.

Liquidity: The main function of stock market is to provide ready market for sale

and purchase of securities. The presence of stock exchange market gives

assurance to investors that their investment can be converted into cash whenever

they want. The investors can invest in long term investment projects without any

hesitation, as because of stock exchange they can convert long term investment

into short term and medium term.

Better Allocation of Capital: The shares of profit making companies are

quoted at higher prices and are actively traded so such companies can easily raise

fresh capital from stock market. The general public hesitates to invest in securities

of loss making companies. So stock exchange facilitates allocation of investor’s

fund to profitable channels.

Promotes the Habits of Savings and Investment: The stock market offers

attractive opportunities of investment in various securities. These attractive

opportunities encourage people to save more and invest in securities of corporate

sector rather than investing in unproductive assets such as gold, silver, etc.

1.7 Characteristics or features of stock exchange

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Market for securities: Stock exchange is a market, where securities of

corporate bodies, government and semi-government bodies are bought and sold.

Deals in second hand securities: It deals with shares, debentures bonds and

such securities already issued by the companies. In short it deals with existing or

second hand securities and hence it is called secondary market.

Regulates trade in securities: Stock exchange does not buy or sell any

securities on its own account. It merely provides the necessary infrastructure and

facilities for trade in securities to its members and brokers who trade in securities.

It regulates the trade activities so as to ensure free and fair trade

Allows dealings only in listed securities: In fact, stock exchanges maintain

an official list of securities that could be purchased and sold on its floor. Securities

which do not figure in the official list of stock exchange are called unlisted

securities. Such unlisted securities cannot be traded in the stock exchange.

Transactions effected only through members: All the transactions in

securities at the stock exchange are effect only through its authorized brokers and

members. Outsiders or direct investors are not allowed to enter in the trading

circles of the stock exchange. Investors have to buy or sell the securities at the

stock exchange through the authorized brokers only.

Association of persons: A stock exchange is an association of persons or body

of individuals which may be registered or unregistered.

Recognition from Central Government: Stock exchange is an organized market.

It requires recognition from the Central Government.

Working as per rules: Buying and selling transactions in securities at the stock

exchange are governed by the rules and regulations of stock exchange as well as

SEBI Guidelines. No deviation from the rules and guidelines is allowed in any

case.

Specific location: Stock exchange is a particular market place where authorized

brokers come together daily (i.e. on working days) on the floor of market called

trading circles and conduct trading activities. The prices of different securities

traded are shown on electronic boards. After the working hours market is closed.

All the working of stock exchanges is conducted and controlled through

computers and electronic system.

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Financial Barometers: Stock exchanges are the financial barometers and

development indicators of national economy of the country. Industrial growth and

stability is reflected in the index of stock exchange.

1.8 Corporate Governance

Corporate governance is the set of processes, customs, policies, laws, and institutions

affecting the way a corporation (or company) is directed, administered or controlled.

Corporate governance also includes the relationship among the many stakeholders

involved and the goals for which the corporation is governed. In simpler terms it means

the extent to which companies are run in an open & honest manner.

1.9 Importance of Corporate governance

Corporate governance ensures that a properly structured Board, capable of taking

independent & objective decisions is at the helm of affairs of the company. This

lays down the framework for creating long-term trust between the company &

external providers of capital.

It improves strategic thinking at the top by inducting independent directors who

bring a wealth of experience & a host of new ideas.

It rationalizes the management & monitoring of risk that a corporation faces

globally.

Corporate governance emphasizes the adoption of transparent procedures &

practices by the Boards, thereby ensuring integrity in financial reports.

It inspires & strengthens investors’ confidence by ensuring that there are adequate

number of non-executive & independent directors on the Boards, to look after the

interests & well-being of all the stakeholders.

Corporate governance helps provide a degree of confidence that is necessary for

the proper functioning of a market economy, as it contemplates adherence to

ethical business standards.

Finally, globalization of the market place has ushered in an era wherein the quality

of corporate governance has become a crucial determinant of survival of

corporate.

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1.10 Why company disclose its information or results to shareholders

and general public?

Companies that are privately owned are not required by law to disclose detailed financial

and operating information. They have wide latitude in deciding what types of information

to make available to the public. They can shield information from public knowledge and

determine for themselves who needs to know specific types of information.

Companies that are publicly owned, on the other hand, are subject to detailed disclosure

laws about their financial condition, operating results, management compensation, and

other areas of their business.

The current system of mandatory corporate disclosure began in the 1930s with the

passage of the Securities Act of 1933 and the Securities Exchange Act of 1934. These acts

as well as subsequent legislation related to disclosure have been implemented by rules

and regulations of the Securities and Exchange Commission (SEC).

Disclosure laws are designed to protect investors through the disclosure of business and

financial information that could be considered relevant to making an investment decision.

Since private companies do not raise money from the investing public, they are not

subject to the same disclosure laws as public companies. Investors in private companies

are considered to be sufficiently well informed about their investment decisions so as not

to require the protection of disclosure laws.

1.11 Disclosure required by the Securities and Exchange Commission

SEC regulations require publicly owned companies to disclose certain types of business

and financial data on a regular basis to the SEC and to the company's stockholders. The

SEC also requires disclosure of relevant business and financial information to potential

investors when new securities, such as stocks and bonds, are issued to the public (with

exceptions for small issues and private placements).

The current system of mandatory corporate disclosure is known as the integrated

disclosure system. By amending some of its regulations, the SEC has attempted to make

this system less burdensome on corporations by standardizing various forms and

eliminating some differences in reporting requirements to the SEC and to shareholders.

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The system integrates the different requirements of the 1933 and 1934 acts and those of

shareholder reports.

1.12 Stock Market Sectors Classification

There are many ways in which stocks can be classified. One of the most preferred ones is

by the sector in which the particular business that issues the stocks falls. This

classification, which includes the grouping together of companies from the same sector, is

done for the purposes of facilitating comparisons between the companies' stocks.

However, many classifications by sectors can be found. One of them divides the market

into eleven sectors, where two of them are referred to as defensive, whereas the other nine

are referred to as cyclical.

Let's now turn our attention to these two classifications and examine them at a closer

look.

A. Cyclical Stocks:

Stocks from the cyclical classification tend to be sensitive to the market

conditions, especially to its cycles, as their name implies. The good news is that if

one sector is down, another sector may experience an upward trend.

This classification includes nine of the sectors that fall in the sector division. They

are as follows:

1. Capital Goods

2. Energy

3. Technology

4. Health care

5. Communications

6. Transportation

7. Basic materials

8. Consumer cyclical

9. Financial

As it can be seen from the list above, investors will not find any difficulty in recognizing

whether a particular business belongs to one cyclical sector or another.

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B. Defensive Stocks:

This classification includes two of the sectors that fall in the sector division. They

are as follows:

Utilities

Consumer staples

These sectors are less susceptible to market cycles since no matter what the

market conditions are people will not stop consume food or electricity. Stocks

from these sectors are used as a balancing and protection mechanism by many

investors in their portfolios in case the market starts to go down.

However, the advantage of defensive stocks can be their drawback as well. This is

so, since no matter what the conditions of the market are people will probably not

start to consume more energy or food, so when the market is up, the prices of

defensive stocks may not go up as well.

C. Stock Sectors Purpose:

The main purpose of stocks sectors is to facilitate investors' comparison of

different stocks. Moreover, comparison of stocks within a particular sector can be

very useful if you want to see how your sectors are performing relative to stocks

within the same sector.

However, try to use the classifications of various sources, since different sources

use different set of sectors.

D. Final Piece of Advice:

Use stock sectors to make effective and reliable comparisons between your stocks

and the other from the same sector. This is recommended in order to see whether

there are any drastic differences in the performance and if there are such to

regulate the disparities.

1.13 Role of stock exchange:

Stock Exchanges play a crucial role in the consolidation of a national economy in general

and in the development of industrial sector in particular. It is the most dynamic and

organized component of capital market. Especially, in developing countries like India, the

stock exchanges play a cardinal role in promoting the level of capital formation through

effective mobilization of savings and ensuring investment safety.

Let’s study the role of stock exchanges in capital market in India:

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1) Effective Mobilization of Saving: Stock exchange provides organized market

for an individual as well as institutional investors. They regulate the trading

transaction with proper rules and regulations in order to ensure investor’s

protection. This helps to consolidate the confidence of investors and small savers.

Thus, stock exchanges attract small savings especially of large number of

investors in the capital market.

2) Promoting Capital formation: The funds mobilized through capital market

are provided to the industries engaged in the production of various goods and

services useful for the society. This leads to capital formation and development of

national assets. The savings mobilized are channelized into appropriate avenues of

investment.

3) Wider Avenues of Investment: Stock exchanges provide a wider avenue for

the investment to the people and organization with investible surplus. Companies

from diverse industries like Information Technology, Steel, Chemicals, Fuels and

Petroleum, Cement, Fertilizers, etc. offer various kinds of equity and debt

securities to the investors. Online trading facility has brought the stock exchange

at the doorsteps of investors through computer network. Diverse type of securities

is made available in the stock exchanges to suit the varying objectives and notions

of different classes of investor. Necessary information from stock exchanges

available from different sources guides the investors in the effective management

of their investment portfolios.

4) Liquidity of Investment: Stock exchanges provide liquidity of investment to

the investors. Investors can sell out any of their investments in securities at any

time during trading days and through hours on stock exchanges. Thus, stock

exchanges provide liquidity of investment. The online trading and online

settlement of demat securities facilitates the investors to sell-out their investment

and realize the proceeds within a day or two. Even investors can switch over their

investment from one security to another according to the changing scenario of

capital market.

5) Investment Priorities: Stock exchanges facilitate the investors to decide his

investment priorities by him the basket of different kinds of securities of different

industries and companies. He can sell stock of one company and buy a stock of

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another company through stock exchange whenever he wants. He can manage his

investment portfolio to maximize his wealth.

6) Investment Safety: Stock exchanges through their by-laws, Securities and

Exchange Board of India (SEBI) guidelines, transparent procedures try to provide

safety to the investment in industrial securities. Government has established the

National Stock Exchange (NSE) and over The Counter Exchange of India

(OTCEI) for investor’ Safety. Exchange authorities try to Curb Speculative

Practices and Minimize The Risk for common Investor to preserve his confidence.

7) Wide Marketability to Securities: Online price quoting system and online

buying and selling facility have changed the nature and working of stock

exchanges. Formerly, the dealings on stock exchanges were restricted to its head

quarters. The investors across the country were absolutely in dark about the price

fluctuations on stock exchanges due to the lack of information. But today due to

Internet, online quoting facility is available at the computers of investors. As a

result, they can keep track of price fluctuations taking place on stock exchange

every second during the working hours. Certain T.V. Channels like CNBC are

fully devoted to stock market information and corporate news. Zeven other

channels display the on line quoting of stocks. Thus, modern stock exchanges

backed up by internet and information technology provide wide marketability to

securities of the industries. Demat facility has revolutionized the procedure of

transfer of securities and facilitated marketing.

8) Financial resources for public and private sectors: Stock exchanges make

available the financial resources available to the industries in public and privat

sector through various kinds of securities. Due to the assurance of liquidity,

marketing support, investment safety assured through stock exchanges, the public

issues of securities by these industries receive strong public response (resulting in

over subscription of issue).

9) Funds for Development Purpose: Stock exchanges enable the government to

mobilize the funds for public utilities and public undertakings which take up the

development activities like power projects, shipping, railways,

telecommunication, dams & roads constructions, etc. Stock exchanges provide

liquidity, marketability, price continuity and constant evaluation of government

securities.

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10) Indicator of Industrial Development: Stock exchanges are the symbolic

indicators of industrial development of a nation. Productivity, efficiency,

economic-status, prospects of each industry and every unit in an industry is

reflected through the price fluctuation of industrial securities on stock exchanges.

Stock exchange Sensex and price fluctuations od securities of various companies

tell the entire story of changes in industrial sector.

11) Barometer of National Economy: Stock exchange is taken as a Barometer of

the economy of a country. Each economy is economically symbolized (indicators)

by its most significant stock exchange. New York Stock Exchange, London Stock

Exchange, Tokyo Stock Exchange and Bombay Stock Exchange are considered as

barometers or U.S.A, United Kingdom, Japan and India respectively. At both

national and international level these stock exchanges represent the progress and

conditions of their economies.

Thus, stock exchange serves the nation in several ways through its diversified

economic services which include imparting liquidity to investments, providing

marketability, enabling evaluation and ensuring price continuity of securities.

1.14 What is 'Market Capitalization'?

Market capitalization is the total dollar market value of all of a company's outstanding

shares. Market capitalization is calculated by multiplying a company's shares outstanding

by the current market price of one share. The investment community uses this figure to

determine a company's size, as opposed to sales or total asset figures.

Frequently referred to as "market cap."

BREAKING DOWN 'Market Capitalization'

If a company has 35 million shares outstanding, each with a market value of $100, the

company's market capitalization is $3.5 billion (35,000,000 x $100 per share).

Company size is a basic determinant of asset allocation and risk-return parameters for

stocks and stock mutual funds. The term should not be confused with a company's

"capitalization," which is a financial statement term that refers to the sum of a company's

shareholders' equity plus long-term debt.

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The stocks of large, medium and small companies are referred to as large-cap, mid-cap,

and small-cap, respectively. Investment professionals differ on their exact definitions, but

the current approximate categories of market capitalization are:

a) Large Cap: $10 billion plus and include the companies with the largest market

capitalization.

b) Mid Cap: $2 billion to $10 billion.

c) Small Cap: Less than $2 billion.

In order to make an investment decision, you may need to factor in the market cap of

some investments. Read Understanding Small- And Big-Cap Stocks.

1.15 Derivatives market

What is a “Derivative”?

The term ‘Derivative’ stands for a contract whose price is derived from or is dependent

upon an underlying asset. The underlying asset could be a financial asset such as

currency, stock and market index, an interest bearing security or a physical commodity.

As Derivatives are merely contracts between two or more parties, anything like weather

data or amount of rain can be used as underlying assets.

Need for Derivatives

The derivatives market performs a number of economic functions. They help in:

Transferring risks

Discovery of future as well as current prices

Catalyzing entrepreneurial activity

Increasing saving and investments in long run.

Participants in Derivative markets

Hedgers use futures or options markets to reduce or eliminate the risk associated

with price of an asset.

Speculators use futures and options contracts to get extra leverage in betting on

future movements in the price of an asset.

Arbitrageurs are in business to take advantage of a discrepancy between prices in

two different markets.

http://www.investopedia.com/articles/analyst/010502.asp

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1.16 What is OTC (Over the counter)?

Over the Counter (OTC) derivatives are those which are privately traded between two

parties and involves no exchange or intermediary.

Non-standard products are traded in the so-called over-the-counter (OTC) derivatives

markets. The Over the counter derivative market consists of the investment banks and

include clients like hedge funds, commercial banks, government sponsored enterprises

etc.

Exchange Traded Derivatives Market: A derivatives exchange is a market where

individuals trade standardized contracts that have been defined by the exchange.

A derivatives exchange acts as an intermediary to all related transactions, and takes initial

margin from both sides of the trade to act as a guarantee.

Classification of Derivatives:

a) Future Contracts

b) Forward Contracts

c) Options

d) Swaps

1.17 The Characteristics of an Efficient Market

Since investors have the opportunity to invest in more than one market, it is important to

have a fair understanding of the criteria on which markets can be compared. Following

are features of an efficient stock market:

I. Efficient system to facilitate trading: A good market should operate smoothly

and efficiently in terms of operation. Buyers and sellers should be able to meet their

expectations without any time delays or difficulties.

II. Availability of information: Timely information plays a vital role in decision-

making relating to investments in stocks. Information on share prices, volumes and

bids of transactions should be available on time without any difficulty.

III. Liquidity: Liquidity in this context refers to the ability to buy or sell shares

quickly at a known price that is not substantially different from the price a moment

ago.

26

IV. Transaction Cost: An efficient market should be cost effective to the investors.

In other words, transaction cost should be minimal. The transaction cost includes

brokerage, cost of trading in the market and cost of transferring the ownership of the

stock.

V. Information Processing Efficiency: One of the most critical and important

attributes of a good market is its information processing capability. The market

price should adequately reflect all information relating to the stock. This also means

that the market should swiftly adjust prices to new information relating to stocks.

1.18 Factors Affecting Share Prices:

Stock market is something where you can never foretell what is going to happen in the

market. You might get huge gain or incur losses when the stock market crashes. There are

many factors affecting share prices. It is very hard to say just one or two factors affect the

share prices. So, let us have a look at the factors that affect share prices.

Demand and Supply: This is the first factor that affects share prices. When you get

to see that more people are buying stocks, then there is an increase in the price of that

particular stock. On the other hand price of stock falls when more people are selling

their stocks. So it is very difficult to predict the Indian stock market. This is the main

reason why you need to get in touch with a good stock market consultant. There is

consultancy for you which can help you a lot on choosing the right stocks for you.

Market cap: It is a very big mistake when you try to guess a company’s worth from

the price of a stock. You should know that the more important is the market

capitalization of the particular company. This helps to determine the worth of a

company. So market cap serves as an important use to determine share prices.

Earnings per share: Now when it comes to the term, “earning per share”, it means

the profit that a particular company has made per share and that too on the last

quarter. If you need to know the health of the company then this is the most important

factor. What’s more earning per share also influences the buying tendency in the

market that results in the increase of the particular stock price. This is the reason why

it is very important for every public company to bring out the quarterly report. So

when you wish to make a profitable investment, then the best thing for you would be

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to keep a good watch on the quarterly reports of different companies. This is very

important before you wish to invest your hard earned money in the share market.

Impact of news: News is another factor that affects the share price. When there is

positive news about a particular stock or company, people try to invest all their money

in that particular stock or market. This leads to increase in the interest of buying the

stock. But there are many circumstances where news could also bring a negative

effect where it could ruin the prospect of the particular stock. So it is very important

to know the overall news of a stock or company where you can invest your money so

that it grows within a very short period of time.

There are many things that you need to consider when you go for investing your hard

earned money in the stock market. You should never be in a haste to invest your

money in the stock market. You should always get in touch with a good stock market

consultancy where it can give you some share tips. They are the one who can give you

advice where to invest your money and where not to. They know to distinguish the

good stock from the bad ones.

So, you have come to know about the factors affecting share prices. Remember that it

is very important to make a good market research before investing in any stock or

company.

1.19 What is NSE?

National Stock Exchange of India or in short NSE happens to be India’s largest Stock

Exchange and World’s third largest stock exchange in terms of transactions. It is located

in Mumbai and was incorporated in November 1992 as a tax-paying company. It was in

April 1993 that NSE was recognized as stock exchange under the Securities Contract Act

1956.

1.20 Objectives of NSE

The main objective behind NSE is to establish trading facility nationwide for all types of

securities. It also ensures equal access to all investors in the country through the process

of an appropriate telecommunication network. NSE was able to achieve its objectives

within a very short span of time. NSE has national reach to major market segments like

equity or capital markets, futures and options or derivatives market, wholesale debt

market, mutual funds, initial public offerings and so on. There is also a concept of day

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trading which suits well for short term investments. But there are investors who think

that this type of trading is quite risky.

Difference between NSE and BSE:

Bombay Stock Exchange and National Stock Exchange are both major stock exchange in

India. But there is a difference between NSE and BSE. Investors put their money in the

stock market in order to reap huge benefits from their investment. But nobody can predict

the market as we have already discussed. Also any stock market is decided by its

country’s growth. But you should be aware that it requires a lot of patience. The market

tumbles down and this is the reason why investors fear of investing their money.

Contents: BSE Vs NSE:

1 Formation

2 Members

3 Listing

4 Indices

1) Formation:

The National Stock Exchange of India was promoted by leading financial institutions

at the behest of the Government of India, and was incorporated in November 1992 as

a tax-paying company. In April 1993, it was recognized as a stock exchange under the

Securities Contracts (Regulation) Act, 1956. NSE commenced operations in the

Wholesale Debt Market (WDM) segment in June 1994. The Capital Market (Equities)

segment of the NSE commenced operations in November 1994, while operations in

the Derivatives segment commenced in June 2000.

Bombay Stock Exchange Limited is the oldest stock exchange in Asia with a rich

heritage. Popularly known as "BSE", it was established as "The Native Share & Stock

Brokers Association" in 1875. It was the first stock exchange in the country to obtain

permanent recognition in 1956 from the Government of India under the Securities

Contracts (Regulation) Act, 1956. Earlier an Association of Persons (AOP), the

Exchange is now a demutualised and corporatized entity incorporated under the

provisions of the Companies Act, 1956, pursuant to the BSE (Corporatization and

Demutualization) Scheme, 2005 notified by the Securities and Exchange Board of

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India (SEBI).Bombay Stock Exchange Limited received its Certificate of

Incorporation on 8th August, 2005 and Certificate of Commencement of Business on

12th August, 2005. The Exchange has succeeded the business and operations of BSE

ongoing concern basis and its recognition as an Exchange has been continued by

SEBI.

2) Members:

While the BSE has over 874 members-brokers across the country, NSE has more

than, 1000 members. In NSE, a prospective trading member is admitted to any of the

following combinations of market segments: Wholesale Debt Market segment,

Capital Market (CM) and the Futures and Options segments, CM Segment and the

WDM segment, or CM Segment, the WDM and the F and O segment. There is no

such thing at BSE and members join as any of the following: Trading Members,

Trading cum Clearing Members, Professional clearing member, Limited trading

member and Self Clearing member.

For NSE: In order to be admitted as a trading member, the individual trading

member/at least two partners of the applicant firm/at least two directors of the

applicant corporate must be graduates and must possess at least two years' experience

in securities markets. The applicant for trading membership/any of its

partners/shareholders/directors must not have been declared defaulters on any stock

exchange, must not be debarred by SEBI for being associated with capital market as

intermediaries and must not be engaged in any fund-based activity. The trades

executed on the Exchange may be cleared and settled by a clearing member. There is

a special category of members, called professional clearing members (PCMs), who do

not trade but only clear trades executed by others.

The initial joining fee for a member at BSE is Rs. 90 Lakhs while that for an NSE

member is between 100 to 300 Lakh depending on the kind of membership one

chooses. In addition to annual fees, NSE members are required to pay transaction

charges on trades undertaken by them. They pay transaction charge at the rate of Rs.

3.5 for every Rs. 1 lakh of turnover in the CM segment. The transaction charges

payable to the exchange by the trading member for the trades executed by him on the

F&O segment are fixed at the rate of Rs. 2 per lakh of turnover (0.002%) subject to a

minimum of Rs. 1,00,000 per year. At BSE, these fees differ according to the various

types of members.

30

For BSE, the requirements to becoming a member are:

Authorized By NSC As A Brokerage House.

Authorization Of BSE

Negotiation From NSC

Trained Staff At BSE (Brokers, Traders, Accountants)

Data On Member Registration

Company By-Laws

Membership Fee

Financial Statements

Company Mission Statements

Handbook On Internal Operations & Control

Personal Information File For Management And Specialized Staff

Contribution To The Guarantee Fund

Payment For The Licensed Access To Use The Operating System

3) Listing:

Listing means formal admission of a security to the trading platform of the Exchange.

In BSE, the securities may be of any public limited company, Central or State

Government, quasi governmental and other financial institutions/corporations,

municipalities, etc. The objectives of listing are mainly to: provide liquidity to

securities; mobilize savings for economic development; protect interest of investors

by ensuring full disclosures. The Exchange has a separate Listing Department to grant

approval for listing of securities of companies in accordance with the provisions of

the Securities Contracts (Regulation) Act, 1956, Securities Contracts (Regulation)

Rules, 1957, Companies Act, 1956, Guidelines issued by SEBI and Rules, Bye-laws

and Regulations of the Exchange. A company intending to have its securities listed on

the Exchange has to comply with the listing requirements prescribed by the Exchange.

31

Some of the requirements are

A. Minimum Listing Requirements for new companies

B. Minimum Listing Requirements for companies listed on other stock exchanges

C. Minimum Requirements for companies delisted by this Exchange seeking

relisting of this Exchange

D. Permission to use the name of the Exchange in an Issuer Company's

prospectus

E. Submission of Letter of Application

F. Allotment of Securities

G. Trading Permission

H. Requirement of 1% Security

I. Payment of Listing Fees

J. Compliance with Listing Agreement

K. Cash Management Service(CMS) - Collection of Listing Fees

L. At NSE, the following criteria’s are to be fulfilled when one applies to be

listed:

M. Approval of Memorandum and Articles of Association

N. Approval of draft prospectus

O. Submission of Application

P. Listing conditions and requirements

Q. Once a company fulfils these criteria’s then they have to submit the following

to the board:

R. A brief note on the promoters and management.

S. Company profile.

T. Copies of the Annual Report for last 3 years.

U. Copies of the Draft Offer Document.

V. Memorandum & Articles of Association.

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The listing fees depend on the companies paid up capital at both NSE and BSE. While

the initial listing fee at NSE is Rs.7,500, it is Rs.20,000 at BSE. The annual listing

fees for a company with a paid up capital up to Rs. 5 Crores is Rs. 10,000 at BSE

while it is Rs. 8,400 at NSE. For a company with paid up capital between 5 to 10

crores, BSE charges Rs. 15,000 while NSE charges Rs. 10,000.

4) Indices:

The main Index of BSE is SENSEX while that of NSE is CNX Nifty. The other

indices at BSE are: BSE 500, BSE 100, BSE 200, BSE PSU, BSE MIDCAP, BSE

SMLCAP, BSE BANKEX, BSE Teck, BSE Auto, BSE Pharma, BSE Fast Moving

Consumer Goods (FMCG), BSE Consumer Durables (SYMBOL: Cons Dura), BSE

Metal.

NSE also set up as index services firm known as India Index Services & Products

Limited (IISL) and has launched several stock indices, including: S&P CNX Nifty,

CNX Nifty Junior, CNX 100 (= S&P CNX Nifty + CNX Nifty Junior), S&P CNX

500 (= CNX 100 + 400 major players across 72 industries), CNX Midcap (introduced

on 18 July 2005 replacing CNX Midcap 200).

33

REVIEW OF LITERATURE

1) Huong N. Higgins (2009), Using quarterly earnings to predict stock price. This paper

develops a stock price prediction model based on quarterly earnings forecasts. The

prediction model is based on the residual income model by Ohlson (1995), and

adjustment for auto-correlation by Higgins (2009). This paper shows that seasonality is

not a problem if four consecutive quarters are included in each price equation. The

paper shows that quarterly earnings forecasts can be useful inputs to stock price

forecast models.

2) Craig E. Lefanowicz, Adam Koch and John R. Robinson (2011), The effect of

quarterly earnings guidance on share values in corporate acquisitions. We examine the

market for corporate control to investigate whether the practice of issuing quarterly

earning guidance results in a short-term focused misallocation of resources. First,

additional research can examine the relation between earnings guidance by potential

targets and the probability of being subsequently acquired. A second opportunity for

future research is to examine the relation between pre-acquisition guidance by targets

and the extent to which the top management from the target firm retain an influential

position in the combined firm. As a result, the process of redeploying assets to more

productive uses may increase the probability of terminating the targets‟ top

management team.

3) S.Saravanakumar, Dr. A.Mahadevan, B.L. Sairam Subramaniam And R.Aarthy

(2012), An empirical investigation on the announcement of corporate quarterly results.

This study examines abnormal returns of earnings announcement during the pre-

announcement and post announcement period. This study is based on samples of 50

Nifty companies listed on National Stock Exchange, exhibited that investors do not

gain value from earnings announcement. The behavior of stock prices has been

examined in the pre-and post-announcement periods in relation to the announcement of

quarterly results. The study is made to find out whether the announcement of earnings

is having any influence on the stock return. The findings of the present study basically

highlight as to how the market evaluates quarterly results.

4) Viktor Soltes (2012), study the impact of quarterly results and analysts’ expectations

on prices of selected equities. The aim of the article is to find the relationship between

the growth and decline in the share price during the promulgation period of quarterly

results of companies and surprise, either positive or negative in the quarterly results.

34

These results became from testing of shares with panel data models, when testing sole

shares, results are not so positive. But in the whole process of testing panel data results

are more important, so it is possible to write these positive conclusions.

5) C.Babu and R. Kasilingam (2013), Impact of quarterly results on share prices. The

purpose of the present study is to find out the effect of quarterly results on share prices

of securities. To find out the relationship between Sensex movements and share price

movements so as to understand the real effect of quarterly results on share prices. The

relation between growth in results of the company and changes in the share prices.

This indicates that there is no relationship between increase in share prices and growth

announced in the quarterly results. The negative relationship indicates that share prices

of certain companies decreased irrespective of good results.

6) S.Saravanakumar and A.Mahadevan (2013), An empirical study on the

announcement of corporate quarterly results in India. This study examines abnormal

returns of earnings announcement during the pre-announcement and post

announcement period. This study is based on samples of 50 nifty companies listed on

national stock exchange, exhibited that investors do not gain value from earnings

announcement. Indeed shareholders earned little value over a period of 15 days prior to

the earnings announcement through to 15 days after the announcement. The findings of

the present study basically highlight as to how the market evaluates quarterly results. It

is simply not true, that earnings announcement data can provide a profitable guide to

investment timing or improve a portfolio’s rate of return.

7) Dr. Rakesh Kumar (2015), Effects of declaration of quarterly results on share price of

selected automobile companies. This Study has been based on Secondary data. Four

Companies has been selected as sample size. The duration of the study from2013-2014

(four quarter year on 1st April to 31st March 2014) Average, standard deviation,

correlation and pie chart have been used in this study. Share price is not affected by the

company’s performance or financial result. Share price of the companies effected by

the micro and macro factors. This study indicates that quarterly result and growth rate

of the companies do not have significant impact on share price of the company.

35

RESEARCH METHODOLOGY

3.1 Problem statement

To study the impact of quarterly results on companies share prices.

3.2 Research question

Weather quarterly results impact on companies share price or not?

Weather any internal or external factors impact on companies or not?

3.3 Objective of the study

The aim of the project is to find out the impact of quarterly results on companies share

prices.

To study the impact of quarterly results on share price.

To study the relationship between share prices before and after quarterly results.

3.4 Research design

In this study researcher used descriptive research designs as researcher describe the

relationship of share price before and after publishing of quarter results.

3.5 Hypothesis

H0: The interim results have an impact on the share prices of the companies.

H1: The interim results have no impact on the share prices of the companies.

3.6 Data collection

This Study has been based on Secondary data. Secondary data has been collected from

the NSE (Nifty) websites. The daily historical closing prices of the companies are

collected from NSE website. The Company’s interim financial report collected from

companies’ websites.

36

3.7 Duration of the study

The duration of the study from 2015-2016 (four quarter year on 1st April to 31st March

2016)

3.8 Sample size

Six Companies has been selected as sample size. Sample Selection Criteria Top six

companies on the basis of market capitalization in the NSE.

3.9 Limitation of the study

Time also imposed a serious limitation on the study was time bound.

3.10 Benefits of the study

The benefits to the investors to invest in future stock market on the basis of quarterly

results of companies share prices.

37

DATA ANALYSIS AND INTERPRETATION

QUARTER 1

Table 4.1 Closing price data of Coal India Ltd

BEFORE AFTER

1-Jul-15 425.5 13-Aug-15 377.05

2-Jul-15 424.05 14-Aug-15 377.55

3-Jul-15 417.5 17-Aug-15 379.85

6-Jul-15 419.75 18-Aug-15 364.15

7-Jul-15 428.9 19-Aug-15 355.65

8-Jul-15 417.15 20-Aug-15 349.85

9-Jul-15 417.15 21-Aug-15 348.65

10-Jul-15 419.95 24-Aug-15 336.6

13-Jul-15 419.95 25-Aug-15 353.6

14-Jul-15 434.15 26-Aug-15 358.15

15-Jul-15 436.65 27-Aug-15 361.85

16-Jul-15 438.3 28-Aug-15 357.55

17-Jul-15 430.15 31-Aug-15 366.35

20-Jul-15 425.45 1-Sep-15 354.7

21-Jul-15 428.65 2-Sep-15 344.35

22-Jul-15 432.35 3-Sep-15 345.3

23-Jul-15 431.5 4-Sep-15 347.5

24-Jul-15 426.05 7-Sep-15 337.45

27-Jul-15 423.6 8-Sep-15 337.35

28-Jul-15 420.85 9-Sep-15 338.95

29-Jul-15 420.15 10-Sep-15 338.35

30-Jul-15 420.35 11-Sep-15 333.85

31-Jul-15 439.05 14-Sep-15 339.3

3-Aug-15 431.7 15-Sep-15 338.05

4-Aug-15 443.4 16-Sep-15 337.45

5-Aug-15 438.5 18-Sep-15 343.35

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6-Aug-15 431.4 21-Sep-15 342.2

7-Aug-15 414.7 22-Sep-15 323.6

10-Aug-15 407.95 23-Sep-15 327.8

11-Aug-15 392.7 24-Sep-15 318.4

Table 4.2 Generates paired T-test of Coal India Ltd

BEFORE AFTER

Average 425.25 347.8267

Variance 107.4062069 235.3258

Observation 30

Pearson correlation 0.29689117

Hypothesized mean difference 0

Df 29

t Stat 26.91020672

P(T<=t) two-tail 4.6225E-22

t Critical two-tail 2.045229611

Standard deviation 10.36369658 15.34033

Interpretation:

To determine the impact of interim result on share price of COALINDIA Ltd, the

independent sample t-test was performed. Above table 4.2 shows the average price

(mean) of COALINDIA Ltd before and after announcement of result.

Average Price of COALINDIA Ltd before announcement is Rs. 425.25 per share and

after announcement is Rs. 347.826 which indicates that there was a decrease in price after

the announcement of result.

The correlation between before and after share price of COALINDIA Ltd is 0.30 so it

indicates the positive correlation between share price of COALINDIA Ltd before and

after the announcement of result.

Now the above table indicates that there is a no significance difference in the value of t-

test of the share price of COALINDIA Ltd as its P value is 4.623 which is greater than

table value 0.05.

It means that H0 is rejected. Hence, that there is no impact in Q1 result on share price. It

may be because speculation or any other economic determinants.

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Table 4.3 Closing price data of Infosys Ltd

BEFORE AFTER

9-Jun-15 1992.1 22-Jul-15 1103.15

10-Jun-15 2026.5 23-Jul-15 1098

11-Jun-15 1997.65 24-Jul-15 1087.6

12-Jun-15 1975.05 27-Jul-15 1065.3

15-Jun-15 990.45 28-Jul-15 1062.85

16-Jun-15 999.35 29-Jul-15 1085.4

17-Jun-15 995.7 30-Jul-15 1070

18-Jun-15 1001.95 31-Jul-15 1077.05

19-Jun-15 995.35 3-Aug-15 1078.95

22-Jun-15 1023.85 4-Aug-15 1057.25

23-Jun-15 1000.4 5-Aug-15 1086.35

24-Jun-15 995.1 6-Aug-15 1086.95

25-Jun-15 990.45 7-Aug-15 1095.6

26-Jun-15 1005.25 10-Aug-15 1086

29-Jun-15 990.15 11-Aug-15 1109.15

30-Jun-15 984.35 12-Aug-15 1144.4

1-Jul-15 997.4 13-Aug-15 1158

2-Jul-15 988 14-Aug-15 1149.25

3-Jul-15 990.3 17-Aug-15 1142.15

6-Jul-15 983.3 18-Aug-15 1164.35

7-Jul-15 980.5 19-Aug-15 1175.55

8-Jul-15 957.5 20-Aug-15 1134.55

9-Jul-15 938 21-Aug-15 1149.9

10-Jul-15 937.5 24-Aug-15 1092.05

13-Jul-15 950.15 25-Aug-15 1085.65

14-Jul-15 971.25 26-Aug-15 1064.6

15-Jul-15 984 27-Aug-15 1082.8

16-Jul-15 989.05 28-Aug-15 1111.05

17-Jul-15 1001.85 31-Aug-15 1094.4

20-Jul-15 1001.25 1-Sep-15 1089

40

Table 4.4 Generates paired T-test of Infosys Ltd

BEFORE AFTER

Average 1121.123333 1102.91

Variance 122731.346 1111.264

Observation 30

Pearson correlation -0.18554269


Df 29

t Stat 0.27864173

P(T<=t) two-tail 0.782497107



Interpretation:

To determine the impact of interim result on share price of Infosys Ltd, the independent

sample t-test was performed. Above table 4.4 shows the average price (mean) of Infosys

Ltd before and after announcement of result.

Average Price of Infosys Ltd before announcement is Rs. 1121.12 per share and after

announcement is Rs. 1102.91 which indicates that there was a decrease in price after the

announcement of result.

The correlation between before and after share price of Infosys Ltd is -0.19 so it indicates

the negative correlation between share price of Infosys Ltd before and after the



test of the share price of Infosys Ltd as its P value is 0.782 which is greater than table

value 0.05.



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Table 4.5 Closing price data of ITC Ltd

BEFORE AFTER

18-Jun-15 305 31-Jul-15 331.55

19-Jun-15 310.4 3-Aug-15 329.9

22-Jun-15 314.55 4-Aug-15 331.8

23-Jun-15 313.65 5-Aug-15 326.25

24-Jun-15 312.35 6-Aug-15 324.45

25-Jun-15 307.95 7-Aug-15 320.95

26-Jun-15 309.95 10-Aug-15 320.1

29-Jun-15 315.15 11-Aug-15 316.75

30-Jun-15 313.6 12-Aug-15 316.35

1-Jul-15 315.05 13-Aug-15 318.15

2-Jul-15 315.6 14-Aug-15 316.9

3-Jul-15 318.4 17-Aug-15 314.85

6-Jul-15 317.35 18-Aug-15 316.9

7-Jul-15 312.95 19-Aug-15 329.35

8-Jul-15 310.6 20-Aug-15 330.75

9-Jul-15 309.9 21-Aug-15 320.2

10-Jul-15 314.6 24-Aug-15 319.9

13-Jul-15 312.3 25-Aug-15 317.65

14-Jul-15 314 26-Aug-15 325.7

15-Jul-15 317.95 27-Aug-15 327

16-Jul-15 322.3 28-Aug-15 325.15

17-Jul-15 320.5 31-Aug-15 315.45

20-Jul-15 313.4 1-Sep-15 320.1

21-Jul-15 314.5 2-Sep-15 320

22-Jul-15 315.1 3-Sep-15 317.1

23-Jul-15 314.55 4-Sep-15 313.45

24-Jul-15 311.65 7-Sep-15 312.9

27-Jul-15 311.2 8-Sep-15 314.4

28-Jul-15 304 9-Sep-15 313.35

29-Jul-15 315.95 10-Sep-15 313.75

42

Table 4.6 Generates paired T-test of ITC Ltd

BEFORE AFTER

Average 313.48167 320.703333

Variance 15.742497 35.941023

Observation 30



Df 29

t Stat -5.159879




Interpretation:

To determine the impact of interim result on share price of ITC Ltd, the independent

sample t-test was performed. Above table 4.6 shows the average price (mean) of ITC Ltd

before and after announcement of result.

Average Price of ITC Ltd before announcement is Rs. 313.48 per share and after

announcement is Rs. 320.70 which indicates that there was a increase in price after the


The correlation between before and after share price of ITC Ltd is -0.15 so it indicates the

negative correlation between share price of ITC Ltd before and after the announcement of

result.


test of the share price of ITC Ltd as its P value is 1.63 which is greater than table value

0.05.



43

Table 4.7 Closing price data of ONGC Ltd

BEFORE AFTER

18-Jun-15 301.9 31-Jul-15 326

19-Jun-15 305 3-Aug-15 331.55

22-Jun-15 310.4 4-Aug-15 329.9

23-Jun-15 314.55 5-Aug-15 331.8

24-Jun-15 313.65 6-Aug-15 326.25

25-Jun-15 312.35 7-Aug-15 324.45

26-Jun-15 307.95 10-Aug-15 320.95

29-Jun-15 309.95 11-Aug-15 320.1

30-Jun-15 315.15 12-Aug-15 316.75

1-Jul-15 313.6 13-Aug-15 316.35

2-Jul-15 315.05 14-Aug-15 318.15

3-Jul-15 315.6 17-Aug-15 316.9

6-Jul-15 318.4 18-Aug-15 314.85

7-Jul-15 317.35 19-Aug-15 316.9

8-Jul-15 312.95 20-Aug-15 329.35

9-Jul-15 310.6 21-Aug-15 330.75

10-Jul-15 309.9 24-Aug-15 320.2

13-Jul-15 314.6 25-Aug-15 319.9

14-Jul-15 312.3 26-Aug-15 317.65

15-Jul-15 314 27-Aug-15 325.7

16-Jul-15 317.95 28-Aug-15 327

17-Jul-15 322.3 31-Aug-15 325.15

20-Jul-15 320.5 1-Sep-15 315.45

21-Jul-15 313.4 2-Sep-15 320.1

22-Jul-15 314.5 3-Sep-15 320

23-Jul-15 315.1 4-Sep-15 317.1

24-Jul-15 314.55 7-Sep-15 313.45

27-Jul-15 311.65 8-Sep-15 312.9

28-Jul-15 311.2 9-Sep-15 314.4

29-Jul-15 304 10-Sep-15 313.35

44

Table 4.8 Generates paired T-test of ONGC Ltd

BEFORE AFTER

Average 313.013333 321.111667

Variance 19.9308506 35.0687385

Observation 30



Df 29

t Stat -5.5131049




Interpretation:

To determine the impact of interim result on share price of ONGC Ltd, the independent

sample t-test was performed. Above table 4.8 shows the average price (mean) of ONGC


Average Price of ONGC Ltd before announcement is Rs. 313.01 per share and after



The correlation between before and after share price of ONGC Ltd is -0.18 so it indicates

the negative correlation between share price of ONGC Ltd before and after the



test of the share price of ONGC Ltd as its P value is 6.10 which is greater than table value

0.05.



45

Table 4.9 Closing price data of Reliance Industry Ltd

BEFORE AFTER

12-Jun-15 889.85 27-Jul-15 1005.35

15-Jun-15 901.75 28-Jul-15 1010.25

16-Jun-15 903.95 29-Jul-15 996

17-Jun-15 931.2 30-Jul-15 1000.15

18-Jun-15 978.95 31-Jul-15 1001.85

19-Jun-15 996.65 3-Aug-15 1002.45

22-Jun-15 991.7 4-Aug-15 988

23-Jun-15 995 5-Aug-15 987.75

24-Jun-15 990.9 6-Aug-15 978.95

25-Jun-15 1004.55 7-Aug-15 984.35

26-Jun-15 1000.7 10-Aug-15 968.9

29-Jun-15 990.85 11-Aug-15 966

30-Jun-15 1000.1 12-Aug-15 942.9

1-Jul-15 1005.65 13-Aug-15 933.35

2-Jul-15 1010.85 14-Aug-15 966.95

3-Jul-15 1007.2 17-Aug-15 950.7

6-Jul-15 1015.55 18-Aug-15 944.1

7-Jul-15 1003.25 19-Aug-15 954.6

8-Jul-15 996.6 20-Aug-15 916.3

9-Jul-15 987.4 21-Aug-15 907.95

10-Jul-15 1001.8 24-Aug-15 829.55

13-Jul-15 1007 25-Aug-15 848.15

14-Jul-15 997.8 26-Aug-15 853.4

15-Jul-15 1011.15 27-Aug-15 869.15

16-Jul-15 1023.7 28-Aug-15 872.4

17-Jul-15 1021.7 31-Aug-15 855.9

20-Jul-15 1024.75 1-Sep-15 839.85

21-Jul-15 1007.8 2-Sep-15 849.55

22-Jul-15 1050.4 3-Sep-15 853.85

23-Jul-15 1045.3 4-Sep-15 835.9

46

Table 4.10 Generates paired T-test of Reliance Industry Ltd

BEFORE AFTER

Average 993.135 930.485

Variance 1454.174 3949.241

Observation 30



Df 29

t Stat 3.731397

P(T<=t) two-tail 1.699127



Interpretation:

To determine the impact of interim result on share price of RELIANCE Ltd, the


(mean) of RELIANCE Ltd before and after announcement of result.

Average Price of RELIANCE Ltd before announcement is Rs. 993.14 per share and after



The correlation between before and after share price of RELIANCE Ltd is -0.64 so it

indicates the negative correlation between share price of RELIANCE Ltd before and after



test of the share price of RELIANCE Ltd as its P value is 1.699 which is greater than

table value 0.05.



47

Table 4.11 Closing price data of TCS Ltd

BEFORE AFTER

28-May-15 2609.5 10-Jul-15 2474.35

29-May-15 2610.3 13-Jul-15 2509.55

1-Jun-15 2617.75 14-Jul-15 2499.5

2-Jun-15 2599.9 15-Jul-15 2545.75

3-Jun-15 2610.9 16-Jul-15 2540.2

4-Jun-15 2605.65 17-Jul-15 2564.4

5-Jun-15 2575.85 20-Jul-15 2579.15

8-Jun-15 2577.45 21-Jul-15 2561.4

9-Jun-15 2561.65 22-Jul-15 2528.05

10-Jun-15 2600.75 23-Jul-15 2488.6

11-Jun-15 2571.3 24-Jul-15 2505.15

12-Jun-15 2505.8 27-Jul-15 2497.05

15-Jun-15 2504.8 28-Jul-15 2502.05

16-Jun-15 2512 29-Jul-15 2506.75

17-Jun-15 2513.8 30-Jul-15 2480.65

18-Jun-15 2530.05 31-Jul-15 2510.75

19-Jun-15 2549.55 3-Aug-15 2509.6

22-Jun-15 2591.5 4-Aug-15 2508.9

23-Jun-15 2574.6 5-Aug-15 2547.15

24-Jun-15 2570.3 6-Aug-15 2573.3

25-Jun-15 2550 7-Aug-15 2552.05

26-Jun-15 2592.8 10-Aug-15 2572.1

29-Jun-15 2592.9 11-Aug-15 2604.2

30-Jun-15 2550.95 12-Aug-15 2671.7

1-Jul-15 2593.1 13-Aug-15 2635.6

2-Jul-15 2577.75 14-Aug-15 2703.2

3-Jul-15 2603.9 17-Aug-15 2684.75

6-Jul-15 2633.3 18-Aug-15 2740.9

7-Jul-15 2616.25 19-Aug-15 2733.6

8-Jul-15 2595.1 20-Aug-15 2686.85

48

Table 4.12 Generates paired T-test of TCS Ltd

BEFORE AFTER

Average 2576.64833 2567.242

Variance 1269.02267 6269.91

Observation 30



Df 29

t Stat 0.71288075

P(T<=t) two-tail 0.48161683



Interpretation:

To determine the impact of interim result on share price of TCS Ltd, the independent

sample t-test was performed. Above table 4.12 shows the average price (mean) of TCS


Average Price of TCS Ltd before announcement is Rs. 2576.65 per share and after



The correlation between before and after share price of TCS Ltd is 0.41 so it indicates the

positive correlation between share price of TCS Ltd before and after the announcement of

result.


test of the share price of TCS Ltd as its P value is 0.48 which is greater than table value

0.05.



49

QUARTER 2


BEFORE AFTER

28-Sep-15 308.85 13-Nov-15 337.7

29-Sep-15 315.4 16-Nov-15 330.75

30-Sep-15 327.6 17-Nov-15 332.35

1-Oct-15 328.35 18-Nov-15 335.05

5-Oct-15 329.75 19-Nov-15 333.7

6-Oct-15 342.7 20-Nov-15 333.3

7-Oct-15 346.25 23-Nov-15 332.2

8-Oct-15 346.2 24-Nov-15 332.4

9-Oct-15 335.85 26-Nov-15 335.8

12-Oct-15 334.4 27-Nov-15 336.5

13-Oct-15 340.35 30-Nov-15 330.55

14-Oct-15 334.75 1-Dec-15 341.55

15-Oct-15 341.4 2-Dec-15 338.35

16-Oct-15 338.6 3-Dec-15 334.8

19-Oct-15 337.8 4-Dec-15 335.25

20-Oct-15 334.95 7-Dec-15 327.55

21-Oct-15 337.25 8-Dec-15 318

23-Oct-15 341.9 9-Dec-15 307.6

26-Oct-15 333.4 10-Dec-15 310.95

27-Oct-15 332.3 11-Dec-15 307.75

28-Oct-15 330.2 14-Dec-15 316.15

29-Oct-15 321.8 15-Dec-15 314.55

30-Oct-15 319.9 16-Dec-15 316.8

2-Nov-15 325 17-Dec-15 316.05

3-Nov-15 325.85 18-Dec-15 316.35

4-Nov-15 330.45 21-Dec-15 319.3

5-Nov-15 337.1 22-Dec-15 319.1

6-Nov-15 342.2 23-Dec-15 322.5

50

9-Nov-15 339.6 24-Dec-15 322.3

10-Nov-15 326.05 28-Dec-15 325.5


BEFORE AFTER

Average 332.873333 326.023333

Variance 79.704092 98.1402989

Observation 30



Df 29

t Stat 2.95630485

P(T<=t) two-tail 0.00613081



Interpretation:



(mean) of COALINDIA Ltd before and after announcement of result.


after announcement is Rs. 326.02 which indicates that there was a increase in price after


The correlation between before and after share price of COALINDIA Ltd is 0.09 so it

indicates the positive correlation between share price of COALINDIA Ltd before and



test of the share price of COALINDIA Ltd as its P value is 0.0061 which is smaller than

table value 0.05.

It means that H0 is accepted. Hence, that there is an impact in Q2 result on share price.

51


BEFORE AFTER

26-Aug-15 1064.6 13-Oct-15 1099.4

27-Aug-15 1082.8 14-Oct-15 1097.6

28-Aug-15 1111.05 15-Oct-15 1097.35

31-Aug-15 1094.4 16-Oct-15 1094.9

1-Sep-15 1089 19-Oct-15 1111.95

2-Sep-15 1099.45 20-Oct-15 1125.95

3-Sep-15 1099.35 21-Oct-15 1138.4

4-Sep-15 1073.95 23-Oct-15 1149.9

7-Sep-15 1058.75 26-Oct-15 1152.15

8-Sep-15 1058.8 27-Oct-15 1149.4

9-Sep-15 1088.7 28-Oct-15 1153.2

10-Sep-15 1080.45 29-Oct-15 1145.05

11-Sep-15 1090.75 30-Oct-15 1135.45

14-Sep-15 1099.75 2-Nov-15 1131.2

15-Sep-15 1099.2 3-Nov-15 1145.5

16-Sep-15 1101.65 4-Nov-15 1136.8

18-Sep-15 1104.45 5-Nov-15 1122.9

21-Sep-15 1104.65 6-Nov-15 1138.3

22-Sep-15 1107.45 9-Nov-15 1134.6

23-Sep-15 1116.25 10-Nov-15 1103.85

24-Sep-15 1140.55 11-Nov-15 1107.6

28-Sep-15 1105.55 13-Nov-15 1100.8

29-Sep-15 1121.85 16-Nov-15 1080.2

30-Sep-15 1161.95 17-Nov-15 1061.5

1-Oct-15 1173.05 18-Nov-15 1020

5-Oct-15 1181.75 19-Nov-15 1047.8

6-Oct-15 1154.6 20-Nov-15 1052.4

7-Oct-15 1133.2 23-Nov-15 1053.7

8-Oct-15 1132.15 24-Nov-15 1041.15

9-Oct-15 1167.4 26-Nov-15 1052.4

52


BEFORE AFTER

Average 1109.9167 1106.047

Variance 1088.9976 1510.233

Observation 30



Df 29

t Stat 0.309236

P(T<=t) two-tail 0.7593528



Interpretation:

To determine the impact of interim result on share price of INFOSYS Ltd, the


(mean) of INFOSYS Ltd before and after announcement of result.

Average Price of INFYSOS Ltd before announcement is Rs. 1109.91 per share and after



The correlation between before and after share price of INFOSYS Ltd is -0.82 so it

indicates the negative correlation between share price of INFOSYS Ltd before and after



test of the share price of INFOSYS Ltd as its P value is 0.76 which is greater than table

value 0.05.



53


BEFORE AFTER

14-Sep-15 313.65 2-Nov-15 337.2

15-Sep-15 317.4 3-Nov-15 334.85

16-Sep-15 322.15 4-Nov-15 335.7

18-Sep-15 318 5-Nov-15 337.15

21-Sep-15 314.25 6-Nov-15 337.7

22-Sep-15 312.15 9-Nov-15 343.05

23-Sep-15 316.1 10-Nov-15 336.75

24-Sep-15 322.55 11-Nov-15 334.25

28-Sep-15 319.25 13-Nov-15 329.8

29-Sep-15 320.4 16-Nov-15 338.3

30-Sep-15 328.8 17-Nov-15 349.1

1-Oct-15 328.75 18-Nov-15 347.85

5-Oct-15 329.5 19-Nov-15 352.05

6-Oct-15 342.85 20-Nov-15 344.45

7-Oct-15 347.25 23-Nov-15 337.25

8-Oct-15 339.1 24-Nov-15 335.9

9-Oct-15 343.45 26-Nov-15 342.8

12-Oct-15 340.75 27-Nov-15 344.35

13-Oct-15 344.05 30-Nov-15 342.55

14-Oct-15 344.1 1-Dec-15 346.25

15-Oct-15 349.4 2-Dec-15 349.4

16-Oct-15 348.8 3-Dec-15 343.35

19-Oct-15 351 4-Dec-15 335.95

20-Oct-15 348.65 7-Dec-15 313.55

21-Oct-15 348.55 8-Dec-15 314.75

23-Oct-15 358.35 9-Dec-15 317.4

26-Oct-15 356.5 10-Dec-15 321.25

27-Oct-15 356 11-Dec-15 321

28-Oct-15 355.2 14-Dec-15 320.1

29-Oct-15 350 15-Dec-15 322.95

54


BEFORE AFTER

Average 336.23167 335.566667

Variance 234.86129 117.441782

Observation 30



Df 29

t Stat 0.1654603

P(T<=t) two-tail 0.8697298



Interpretation:

To determine the impact of interim result on share price of ITC Ltd, the


(mean) of ITC Ltd before and after announcement of result.




The correlation between before and after share price of ITC Ltd is so -0.398 it indicates

the negative correlation between share price of ITC Ltd before and after the




0.05.



55


BEFORE AFTER

22-Sep-15 234.5 9-Nov-15 249.3

23-Sep-15 236.55 10-Nov-15 236.7

24-Sep-15 227.5 11-Nov-15 237

28-Sep-15 225.1 13-Nov-15 228.9

29-Sep-15 226.4 16-Nov-15 230.15

30-Sep-15 229.35 17-Nov-15 232.35

1-Oct-15 232.35 18-Nov-15 230.7

5-Oct-15 240.5 19-Nov-15 233

6-Oct-15 247.35 20-Nov-15 234.05

7-Oct-15 257.75 23-Nov-15 231.7

8-Oct-15 257.65 24-Nov-15 232.8

9-Oct-15 263.65 26-Nov-15 234.85

12-Oct-15 263.4 27-Nov-15 235.4

13-Oct-15 253.9 30-Nov-15 234.15

14-Oct-15 255 1-Dec-15 235.6

15-Oct-15 260.15 2-Dec-15 235.8

16-Oct-15 264.1 3-Dec-15 229.7

19-Oct-15 257.85 4-Dec-15 227.2

20-Oct-15 253.15 7-Dec-15 223.9

21-Oct-15 253.45 8-Dec-15 215.75

23-Oct-15 257.3 9-Dec-15 217.1

26-Oct-15 256.45 10-Dec-15 219.8

27-Oct-15 247.9 11-Dec-15 215.35

28-Oct-15 251.8 14-Dec-15 213.4

29-Oct-15 250.85 15-Dec-15 217.8

30-Oct-15 246.95 16-Dec-15 226.65

2-Nov-15 247.4 17-Dec-15 224.8

3-Nov-15 250.7 18-Dec-15 223.25

4-Nov-15 252.1 21-Dec-15 230.45

5-Nov-15 250.65 22-Dec-15 230.55

56


BEFORE AFTER

Average 248.39167 228.93833

Variance 134.36536 63.891497

Observation 30



Df 29

t Stat 6.8420191




Interpretation:

To determine the impact of interim result on share price of ONGC Ltd, the


(mean) of ONGC Ltd before and after announcement of result.




The correlation between before and after share price of ONGC Ltd is -0.24 so it indicates

the negative correlation between share price of ONGC Ltd before and after the



test of the share price of ONGC Ltd as its P value is 1.63 which is greater than table value

0.05.



57


BEFORE AFTER

1-Sep-15 839.85 19-Oct-15 963.5

2-Sep-15 849.55 20-Oct-15 956.7

3-Sep-15 853.85 21-Oct-15 955

4-Sep-15 835.9 23-Oct-15 955.65

7-Sep-15 833.2 26-Oct-15 942.85

8-Sep-15 848.6 27-Oct-15 939.55

9-Sep-15 874.05 28-Oct-15 936.95

10-Sep-15 867 29-Oct-15 941

11-Sep-15 860.95 30-Oct-15 947.7

14-Sep-15 863.85 2-Nov-15 959.8

15-Sep-15 868.15 3-Nov-15 967.2

16-Sep-15 872.55 4-Nov-15 951.3

18-Sep-15 895.4 5-Nov-15 936.6

21-Sep-15 878.1 6-Nov-15 952.4

22-Sep-15 847.9 9-Nov-15 961.25

23-Sep-15 850.35 10-Nov-15 922.75

24-Sep-15 837.35 11-Nov-15 928.45

28-Sep-15 834.25 13-Nov-15 933.05

29-Sep-15 840.75 16-Nov-15 934.3

30-Sep-15 862.3 17-Nov-15 927.75

1-Oct-15 864.7 18-Nov-15 912

5-Oct-15 888 19-Nov-15 934.75

6-Oct-15 898.05 20-Nov-15 946.85

7-Oct-15 913.8 23-Nov-15 953.75

8-Oct-15 889.1 24-Nov-15 967.7

9-Oct-15 887.35 26-Nov-15 988.65

12-Oct-15 891.75 27-Nov-15 979.05

13-Oct-15 893.6 30-Nov-15 965.85

14-Oct-15 902.95 1-Dec-15 965.9

15-Oct-15 903.7 2-Dec-15 977.95

58


BEFORE AFTER

Average 868.23 950.20667

Variance 566.998035 319.92306

Observation 30



Df 29

t Stat -19.25494




Interpretation:



(mean) of RELIANCE Ltd before and after announcement of result.




The correlation between before and after share price of RELIANCE Ltd is 0.40 so it

indicates the positive correlation between share price of RELIANCE Ltd before and after



test of the share price of RELIANCE Ltd as its P value is 4.58 which is greater than table

value 0.05.



59


BEFORE AFTER

27-Aug-15 2574.65 14-Oct-15 2483.7

28-Aug-15 2570.85 15-Oct-15 2467.75

31-Aug-15 2564.05 16-Oct-15 2473.75

1-Sep-15 2537.4 19-Oct-15 2488.75

2-Sep-15 2591.8 20-Oct-15 2526.75

3-Sep-15 2605.6 21-Oct-15 2530

4-Sep-15 2547.45 23-Oct-15 2537.15

7-Sep-15 2539.75 26-Oct-15 2536.55

8-Sep-15 2540.3 27-Oct-15 2531.1

9-Sep-15 2549.75 28-Oct-15 2529.1

10-Sep-15 2545.4 29-Oct-15 2495.35

11-Sep-15 2552 30-Oct-15 2495.2

14-Sep-15 2551.65 2-Nov-15 2517.35

15-Sep-15 2547.6 3-Nov-15 2543.45

16-Sep-15 2550.35 4-Nov-15 2533.8

18-Sep-15 2551.25 5-Nov-15 2482.65

21-Sep-15 2551.05 6-Nov-15 2505.75

22-Sep-15 2526.8 9-Nov-15 2471.35

23-Sep-15 2532.65 10-Nov-15 2458.15

24-Sep-15 2580.4 11-Nov-15 2468.8

28-Sep-15 2593.7 13-Nov-15 2397.4

29-Sep-15 2588.25 16-Nov-15 2374.6

30-Sep-15 2588.05 17-Nov-15 2390.55

1-Oct-15 2644.6 18-Nov-15 2351.45

5-Oct-15 2711.65 19-Nov-15 2362.55

6-Oct-15 2700 20-Nov-15 2398.35

7-Oct-15 2653.95 23-Nov-15 2391.05

8-Oct-15 2633.8 24-Nov-15 2367.95

9-Oct-15 2629.65 26-Nov-15 2345.55

12-Oct-15 2592.6 27-Nov-15 2353.35

60


BEFORE AFTER

Average 2581.567 2460.3083

Variance 2301.255 4567.3038

Observation 30



Df 29

t Stat 6.191847




Interpretation:

To determine the impact of interim result on share price of TCS Ltd, the


(mean) of TCS Ltd before and after announcement of result.




The correlation between before and after share price of TCS Ltd is -0.72 so it indicates

the negative correlation between share price of TCS Ltd before and after the




0.05.



61

QUARTER 3


BEFORE AFTER

30-Dec-15 322.1 12-Feb-16 302.85

31-Dec-15 329.8 15-Feb-16 324.25

1-Jan-16 334.05 16-Feb-16 317.9

4-Jan-16 330.2 17-Feb-16 312.8

5-Jan-16 325.8 18-Feb-16 317.6

6-Jan-16 327.9 19-Feb-16 312.25

7-Jan-16 326.4 22-Feb-16 313.9

8-Jan-16 321.1 23-Feb-16 301.1

11-Jan-16 315.95 24-Feb-16 295.25

12-Jan-16 316 25-Feb-16 299.4

13-Jan-16 317.3 26-Feb-16 311.45

14-Jan-16 318.65 29-Feb-16 311

15-Jan-16 318.55 1-Mar-16 317.85

18-Jan-16 310.85 2-Mar-16 311

19-Jan-16 308.85 3-Mar-16 314.1

20-Jan-16 298.15 4-Mar-16 325.15

21-Jan-16 288.2 8-Mar-16 324.05

22-Jan-16 299.45 9-Mar-16 322.5

25-Jan-16 304.9 10-Mar-16 321.7

27-Jan-16 304.05 11-Mar-16 318.9

28-Jan-16 306.6 14-Mar-16 296.7

29-Jan-16 319.95 15-Mar-16 295.65

1-Feb-16 328.55 16-Mar-16 295.65

2-Feb-16 318.95 17-Mar-16 294.25

3-Feb-16 317.25 18-Mar-16 297.75

4-Feb-16 322.5 21-Mar-16 296.6

5-Feb-16 326.25 22-Mar-16 294.4

8-Feb-16 323.35 23-Mar-16 298

62

9-Feb-16 309.25 28-Mar-16 293.5

10-Feb-16 313.75 29-Mar-16 295.15


BEFORE AFTER

Mean 316.8216667 307.755

Variance 115.6754626 123.7504052

Observations 30



Df 29

t Stat 2.830996795

P(T<=t) two-tail 0.008344639


Standard Deviation 10.75525279 13.36357203

Interpretation:


Independent sample t-test was performed. Above table 4.26 shows the average price

(Mean) of COALINDIA Ltd before and after announcement of result.




The correlation between before and after share price of COALINDIA Ltd is -0.29 so it

indicates the negative correlation between share price of COALINDIA Ltd before and



test of the share price of COALINDIA Ltd as its P value is 0.008 which is smaller than

table value 0.05.


63


BEFORE AFTER

2-Dec-15 1060.7 15-Jan-16 1139.9

3-Dec-15 1057.75 18-Jan-16 1131.9

4-Dec-15 1049.05 19-Jan-16 1139.65

7-Dec-15 1046.25 20-Jan-16 1121.25

8-Dec-15 1044.4 21-Jan-16 1137.05

9-Dec-15 1028.2 22-Jan-16 1136.25

10-Dec-15 1047.35 25-Jan-16 1137.65

11-Dec-15 1052.8 27-Jan-16 1138.5

14-Dec-15 1069.5 28-Jan-16 1129.6

15-Dec-15 1077.55 29-Jan-16 1164.9

16-Dec-15 1095.85 1-Feb-16 1173.35

17-Dec-15 1107.1 2-Feb-16 1175.55

18-Dec-15 1083.15 3-Feb-16 1157.7

21-Dec-15 1103.45 4-Feb-16 1179.75

22-Dec-15 1083.75 5-Feb-16 1174.7

23-Dec-15 1100.85 8-Feb-16 1150.8

24-Dec-15 1096.35 9-Feb-16 1107.65

28-Dec-15 1104.75 10-Feb-16 1108.55

29-Dec-15 1104.7 11-Feb-16 1078.65

30-Dec-15 1086.3 12-Feb-16 1084.65

31-Dec-15 1105.4 15-Feb-16 1091.75

1-Jan-16 1105.25 16-Feb-16 1079.15

4-Jan-16 1078.9 17-Feb-16 1097.85

5-Jan-16 1074.05 18-Feb-16 1123.4

6-Jan-16 1069.35 19-Feb-16 1127.25

7-Jan-16 1050.8 22-Feb-16 1126.65

8-Jan-16 1063.3 23-Feb-16 1123.9

11-Jan-16 1055.7 24-Feb-16 1125.35

12-Jan-16 1049.95 25-Feb-16 1110.3

13-Jan-16 1083.4 26-Feb-16 1121.15

64


Interpretation:



(Mean) of INFOSYS Ltd before and after announcement of result.

Average Price of INFOSYS Ltd before announcement is Rs. 1074.53 per share and after







test of the share price of INFOSYS Ltd as its P value is which is 6.801 greater than table

value 0.05.



BEFORE AFTER

Average 1074.53 1129.825

Variance 535.6156 781.3196

Observation 30



Df 29

t Stat -8.06488368




65


BEFORE AFTER

10-Dec-15 321.25 25-Jan-16 309.4

11-Dec-15 321 27-Jan-16 312.95

14-Dec-15 320.1 28-Jan-16 318.55

15-Dec-15 322.95 29-Jan-16 320.2

16-Dec-15 319.25 1-Feb-16 324.75

17-Dec-15 320.5 2-Feb-16 324.25

18-Dec-15 317.1 3-Feb-16 321.95

21-Dec-15 326.55 4-Feb-16 321.8

22-Dec-15 320.25 5-Feb-16 323.95

23-Dec-15 321.5 8-Feb-16 315.25

24-Dec-15 323.7 9-Feb-16 312.4

28-Dec-15 326.2 10-Feb-16 309

29-Dec-15 324.85 11-Feb-16 298.55

30-Dec-15 326.55 12-Feb-16 300.1

31-Dec-15 327.8 15-Feb-16 303.7

1-Jan-16 327.5 16-Feb-16 295.5

4-Jan-16 325.1 17-Feb-16 299.85

5-Jan-16 324.85 18-Feb-16 305.45

6-Jan-16 315.1 19-Feb-16 304.55

7-Jan-16 309.6 22-Feb-16 299.85

8-Jan-16 313.65 23-Feb-16 293.8

11-Jan-16 316.05 24-Feb-16 287.6

12-Jan-16 315.15 25-Feb-16 286.2

13-Jan-16 315.75 26-Feb-16 290.95

14-Jan-16 317.25 29-Feb-16 295.65

15-Jan-16 313.9 1-Mar-16 325.35

18-Jan-16 315.4 2-Mar-16 319.55

19-Jan-16 314.05 3-Mar-16 318.15

20-Jan-16 308.95 4-Mar-16 315.2

21-Jan-16 306.4 8-Mar-16 320.25

66


BEFORE AFTER

Average 319.275 309.1567

Variance 33.55858 146.7855

Observation 30



Df 29

t Stat 4.044178




Interpretation:



(Mean) of ITC Ltd before and after announcement of result.




The correlation between before and after share price of ITC Ltd is -0.053 so it indicates

the negative correlation between share price of ITC Ltd before and after the



test of the share price of ITC Ltd as its P value is which 0.0004 is smaller than table value

0.05.


67


BEFORE AFTER

30-Dec-15 239.9 12-Feb-16 193.25

31-Dec-15 241.75 15-Feb-16 200.35

1-Jan-16 242.5 16-Feb-16 199.95

4-Jan-16 238.05 17-Feb-16 200.35

5-Jan-16 241.85 18-Feb-16 209.1

6-Jan-16 237.55 19-Feb-16 211.15

7-Jan-16 226.6 22-Feb-16 214.4

8-Jan-16 230.15 23-Feb-16 214.6

11-Jan-16 225.5 24-Feb-16 209.4

12-Jan-16 221.35 25-Feb-16 216.25

13-Jan-16 223.2 26-Feb-16 216.05

14-Jan-16 223.25 29-Feb-16 194.1

15-Jan-16 219.45 1-Mar-16 191.5

18-Jan-16 214.4 2-Mar-16 194.95

19-Jan-16 218 3-Mar-16 197.2

20-Jan-16 213.3 4-Mar-16 200.7

21-Jan-16 207.3 8-Mar-16 201.85

22-Jan-16 216.25 9-Mar-16 205.25

25-Jan-16 219.65 10-Mar-16 205.7

27-Jan-16 218.4 11-Mar-16 205.1

28-Jan-16 219.9 14-Mar-16 208.25

29-Jan-16 226.25 15-Mar-16 207.4

1-Feb-16 225.05 16-Mar-16 206.5

2-Feb-16 216.55 17-Mar-16 212.25

3-Feb-16 213.05 18-Mar-16 214.6

4-Feb-16 220 21-Mar-16 216.65

5-Feb-16 219.95 22-Mar-16 216.1

8-Feb-16 214.05 23-Mar-16 214.6

9-Feb-16 218.15 28-Mar-16 213.95

10-Feb-16 213.5 29-Mar-16 212.25

68


BEFORE AFTER

Mean 223.495 206.791667

Variance 96.00006034 60.4350144

Observations 30



Df 29

t Stat 6.784844111

P(T<=t) two-tail 1.89742E-07


Standard Deviation 9.797962051 7.77399604

Interpretation:



(Mean) of ONGC Ltd before and after announcement of result.




The correlation between before and after share price of ONGC Ltd is -0.166 so it

indicates the negative correlation between share price of ONGC Ltd before and after the



test of the share price of ONGC Ltd as its P value is which is 1.897 greater than table

value 0.05.



69


BEFORE AFTER

7-Dec-15 952.05 20-Jan-16 1004.55

8-Dec-15 940.9 21-Jan-16 984.2

9-Dec-15 915.9 22-Jan-16 1004.15

10-Dec-15 950.35 25-Jan-16 1003.95

11-Dec-15 952.95 27-Jan-16 999.35

14-Dec-15 955.1 28-Jan-16 1016.9

15-Dec-15 975.9 29-Jan-16 1035.4

16-Dec-15 978.65 1-Feb-16 1030.3

17-Dec-15 1009.7 2-Feb-16 1001.15

18-Dec-15 991.9 3-Feb-16 981.4

21-Dec-15 992.1 4-Feb-16 973.05

22-Dec-15 987.3 5-Feb-16 970.9

23-Dec-15 1003.8 8-Feb-16 961.05

24-Dec-15 1000.55 9-Feb-16 957.5

28-Dec-15 1010.4 10-Feb-16 962.65

29-Dec-15 1015.4 11-Feb-16 924.55

30-Dec-15 1004.5 12-Feb-16 906.55

31-Dec-15 1014.6 15-Feb-16 946.75

1-Jan-16 1015.35 16-Feb-16 930.55

4-Jan-16 995.3 17-Feb-16 952.6

5-Jan-16 1005.15 18-Feb-16 940.1

6-Jan-16 1032.2 19-Feb-16 944.35

7-Jan-16 1013.25 22-Feb-16 962.3

8-Jan-16 1025.75 23-Feb-16 949.65

11-Jan-16 1051.6 24-Feb-16 952.65

12-Jan-16 1045.45 25-Feb-16 944.1

13-Jan-16 1076.85 26-Feb-16 950.35

14-Jan-16 1061.65 29-Feb-16 966.65

15-Jan-16 1073.3 1-Mar-16 981.3

18-Jan-16 1016.85 2-Mar-16 1001.5

70


BEFORE AFTER

Average 1002.158 971.3483

Variance 1506.373 1001.392

Observation 30



Df 29

t Stat 2.723212




Interpretation:



(Mean) of RELIANCE Ltd before and after announcement of result.

Average Price of RELIANCE Ltd before announcement is Rs. 1002.16 per share and







test of the share price of RELIANCE Ltd as its P value is which 0.01 is smaller than table

value 0.05.


71


BEFORE AFTER

30-Nov-15 2364.7 13-Jan-16 2279.2

1-Dec-15 2361.9 14-Jan-16 2278.8

2-Dec-15 2365.2 15-Jan-16 2261.1

3-Dec-15 2350.75 18-Jan-16 2277.65

4-Dec-15 2328.4 19-Jan-16 2279.3

7-Dec-15 2319.8 20-Jan-16 2280.1

8-Dec-15 2329 21-Jan-16 2254.5

9-Dec-15 2367.65 22-Jan-16 2295.75

10-Dec-15 2384.55 25-Jan-16 2304.65

11-Dec-15 2386 27-Jan-16 2319.75

14-Dec-15 2378.45 28-Jan-16 2331.2

15-Dec-15 2375.85 29-Jan-16 2391.3

16-Dec-15 2408.4 1-Feb-16 2402.7

17-Dec-15 2439.75 2-Feb-16 2398.1

18-Dec-15 2416.8 3-Feb-16 2416.3

21-Dec-15 2446.4 4-Feb-16 2420.05

22-Dec-15 2405.05 5-Feb-16 2421.95

23-Dec-15 2425.8 8-Feb-16 2362.95

24-Dec-15 2434.25 9-Feb-16 2281.4

28-Dec-15 2462.7 10-Feb-16 2268.8

29-Dec-15 2455.8 11-Feb-16 2197.95

30-Dec-15 2418.3 12-Feb-16 2226.6

31-Dec-15 2436.85 15-Feb-16 2269.15

1-Jan-16 2416.4 16-Feb-16 2265.55

4-Jan-16 2369.6 17-Feb-16 2275.55

5-Jan-16 2348.95 18-Feb-16 2315.85

6-Jan-16 2381.6 19-Feb-16 2319.65

7-Jan-16 2371.25 22-Feb-16 2315.9

8-Jan-16 2397.6 23-Feb-16 2264

11-Jan-16 2362.35 24-Feb-16 2210.95

72


BEFORE AFTER

Average 2390.337 2306.223

Variance 1508.164 3837.351

Observation 30



Df 29

t Stat 7.003814




Interpretation:



(Mean) of TCS Ltd before and after announcement of result.




The correlation between before and after share price of TCS Ltd is 0.211 so it indicates

the positive correlation between share price of TCS Ltd before and after the




0.05.



73

QUARTER 4


BEFORE AFTER

15-Apr-15 385.95 29-May-15 391.05

16-Apr-15 383.65 1-Jun-15 391.8

17-Apr-15 380.4 2-Jun-15 383.5

20-Apr-15 372.05 3-Jun-15 387.25

21-Apr-15 374.4 4-Jun-15 388.55

22-Apr-15 379.2 5-Jun-15 405.35

23-Apr-15 384.25 8-Jun-15 400.95

24-Apr-15 376.25 9-Jun-15 401.3

27-Apr-15 377.65 10-Jun-15 404.9

28-Apr-15 372.4 11-Jun-15 400.1

29-Apr-15 370.95 12-Jun-15 396.1

30-Apr-15 362.75 15-Jun-15 394.3

4-May-15 369.8 16-Jun-15 397.35

5-May-15 364.4 17-Jun-15 398.1

6-May-15 353.1 18-Jun-15 394.55

7-May-15 360.8 19-Jun-15 393.65

8-May-15 363.7 22-Jun-15 399.7

11-May-15 371.95 23-Jun-15 415.4

12-May-15 369.2 24-Jun-15 412.3

13-May-15 368.95 25-Jun-15 411.35

14-May-15 370.2 26-Jun-15 411.4

15-May-15 366.9 29-Jun-15 407.7

18-May-15 366.1 30-Jun-15 421.25

19-May-15 363.65 1-Jul-15 425.5

20-May-15 361.35 2-Jul-15 424.05

21-May-15 373.7 3-Jul-15 417.5

22-May-15 374.75 6-Jul-15 419.75

25-May-15 369.9 7-Jul-15 428.9

74

26-May-15 375 8-Jul-15 417.15

27-May-15 383.05 9-Jul-15 417.15


BEFORE AFTER

Average 371.5467 405.2633

Variance 60.81551 157.6677

Observation 30



Df 29

t Stat -11.7103




Interpretation:



(Mean) of COALINDIA Ltd before and after announcement of result.


after announcement is Rs. 405.26 which indicates that there was a increase in price after


The correlation between before and after share price of COALINDIA Ltd is -0.15 so it

indicates the negative correlation between share price of COALINDIA Ltd before and



test of the share price of COALINDIA Ltd as its P value is 1.64 which is greater than

table value 0.05.



75


BEFORE AFTER

10-Mar-15 2198 27-Apr-15 1984.65

11-Mar-15 2182.2 28-Apr-15 1960.9

12-Mar-15 2218.3 29-Apr-15 1961.15

13-Mar-15 2220.4 30-Apr-15 1942.25

16-Mar-15 2266.65 4-May-15 1993.1

17-Mar-15 2240.5 5-May-15 1962.75

18-Mar-15 2229.5 6-May-15 1922.05

19-Mar-15 2230.45 7-May-15 1944

20-Mar-15 2257.45 8-May-15 1957.95

23-Mar-15 2233.45 11-May-15 1993.65

24-Mar-15 2211.45 12-May-15 1947.1

25-Mar-15 2219.1 13-May-15 1956.7

26-Mar-15 2146.35 14-May-15 1934.8

27-Mar-15 2202.15 15-May-15 1961.75

30-Mar-15 2228 18-May-15 1993.05

31-Mar-15 2218.35 19-May-15 2022.35

1-Apr-15 2173.95 20-May-15 2047.3

6-Apr-15 2178.2 21-May-15 2048.45

7-Apr-15 2159.5 22-May-15 2046.45

8-Apr-15 2200.55 25-May-15 2016.8

9-Apr-15 2215 26-May-15 2007.3

10-Apr-15 2233.95 27-May-15 1968.5

13-Apr-15 2238.8 28-May-15 2016.6

15-Apr-15 2213.7 29-May-15 2023.15

16-Apr-15 2194.65 1-Jun-15 2047.8

17-Apr-15 2179.25 2-Jun-15 2008.65

20-Apr-15 2132.15 3-Jun-15 2020.9

21-Apr-15 2142.6 4-Jun-15 2028.05

22-Apr-15 2137.7 5-Jun-15 2011.65

23-Apr-15 2122 8-Jun-15 2000.05

76


BEFORE AFTER

Average 2200.81 1990.995

Variance 1449.624 1385.097

Observation 30



Df 29

t Stat 18.36113




Interpretation:



(Mean) of INFOSYS Ltd before and after announcement of result.

Average Price of INFOSYS Ltd before announcement is Rs. 2200.81 per share and after







test of the share price of INFOSYS Ltd as its P value is 1.64 which is greater than table

value 0.05.



77


BEFORE AFTER

8-Apr-15 346.25 25-May-15 316.8

9-Apr-15 347.15 26-May-15 314

10-Apr-15 346.65 27-May-15 317.7

13-Apr-15 351.5 28-May-15 321.45

15-Apr-15 354.95 29-May-15 327.1

16-Apr-15 350.1 1-Jun-15 332.05

17-Apr-15 351.85 2-Jun-15 318.65

20-Apr-15 341.9 3-Jun-15 304.4

21-Apr-15 341.95 4-Jun-15 301.6

22-Apr-15 343.4 5-Jun-15 304.3

23-Apr-15 342.1 8-Jun-15 304.35

24-Apr-15 347.95 9-Jun-15 300.6

27-Apr-15 344.85 10-Jun-15 301.1

28-Apr-15 337.55 11-Jun-15 297.05

29-Apr-15 328.15 12-Jun-15 297.55

30-Apr-15 322.35 15-Jun-15 298.5

4-May-15 330.2 16-Jun-15 298.95

5-May-15 326.25 17-Jun-15 301.1

6-May-15 318.35 18-Jun-15 301.9

7-May-15 322.55 19-Jun-15 305

8-May-15 328 22-Jun-15 310.4

11-May-15 326.45 23-Jun-15 314.55

12-May-15 324.25 24-Jun-15 313.65

13-May-15 327.85 25-Jun-15 312.35

14-May-15 324.7 26-Jun-15 307.95

15-May-15 326.4 29-Jun-15 309.95

18-May-15 333 30-Jun-15 315.15

19-May-15 332.55 1-Jul-15 313.6

20-May-15 331.95 2-Jul-15 315.05

21-May-15 327.4 3-Jul-15 315.6

78


BEFORE AFTER

Average 335.9517 309.7467

Variance 115.0934 80.17861

Observation 30



Df 29

t Stat 13.56842




Interpretation:



(Mean) of ITC Ltd before and after announcement of result.




The correlation between before and after share price of ITC Ltd is 0.434 so it indicates

the positive correlation between share price of ITC Ltd before and after the




0.05.



79


BEFORE AFTER

15-Apr-15 317.15 29-May-15 329.85

16-Apr-15 327.65 1-Jun-15 324.1

17-Apr-15 330 2-Jun-15 320.3

20-Apr-15 321.8 3-Jun-15 307.85

21-Apr-15 320.35 4-Jun-15 301.35

22-Apr-15 312.3 5-Jun-15 308.2

23-Apr-15 307.95 8-Jun-15 306.4

24-Apr-15 316.85 9-Jun-15 301.45

27-Apr-15 309.35 10-Jun-15 305.35

28-Apr-15 307.55 11-Jun-15 301

29-Apr-15 306.3 12-Jun-15 300.4

30-Apr-15 304 15-Jun-15 303.95

4-May-15 328.35 16-Jun-15 304.45

5-May-15 342.15 17-Jun-15 306

6-May-15 327.9 18-Jun-15 312.85

7-May-15 320.05 19-Jun-15 319.15

8-May-15 315.5 22-Jun-15 318.4

11-May-15 319 23-Jun-15 318.9

12-May-15 309.65 24-Jun-15 317.9

13-May-15 311.1 25-Jun-15 312.95

14-May-15 316.15 26-Jun-15 313.2

15-May-15 318.9 29-Jun-15 309.05

18-May-15 321.75 30-Jun-15 309.6

19-May-15 317.6 1-Jul-15 313.9

20-May-15 314.55 2-Jul-15 310

21-May-15 318.3 3-Jul-15 309.2

22-May-15 323.05 6-Jul-15 308.25

25-May-15 329.55 7-Jul-15 304.95

26-May-15 322.5 8-Jul-15 302.95

27-May-15 332 9-Jul-15 298.7

80

Table 4.44 Generates paired T- test of ONGC Ltd

BEFORE AFTER

Average 318.9767 310.02

Variance 75.9884 58.3339

Observation 30



Df 29

t Stat 4.37994




Interpretation:



(Mean) of ONGC Ltd before and after announcement of result.




The correlation between before and after share price of ONGC Ltd is 0.067 so it indicates

the positive correlation between share price of ONGC Ltd before and after the



test of the share price of ONGC Ltd as its P value is 0.0001 which is smaller than table

value 0.05.


81


BEFORE AFTER

2-Mar-15 864.25 20-Apr-15 885.65

3-Mar-15 900.8 21-Apr-15 876.45

4-Mar-15 887.85 22-Apr-15 879.75

5-Mar-15 884.95 23-Apr-15 877.05

9-Mar-15 869.65 24-Apr-15 878.9

10-Mar-15 859.15 27-Apr-15 875.3

11-Mar-15 855.95 28-Apr-15 865.2

12-Mar-15 863.8 29-Apr-15 850

13-Mar-15 850.1 30-Apr-15 862.35

16-Mar-15 842.1 4-May-15 890.95

17-Mar-15 856.85 5-May-15 892.15

18-Mar-15 868.65 6-May-15 880.25

19-Mar-15 856.15 7-May-15 870.75

20-Mar-15 854.1 8-May-15 889.7

23-Mar-15 841.95 11-May-15 895.95

24-Mar-15 847.95 12-May-15 868.7

25-Mar-15 844.9 13-May-15 885.1

26-Mar-15 829.3 14-May-15 878.2

27-Mar-15 811.7 15-May-15 873.95

30-Mar-15 810.75 18-May-15 891.55

31-Mar-15 826 19-May-15 895.55

1-Apr-15 836.05 20-May-15 908.85

6-Apr-15 824.65 21-May-15 896.75

7-Apr-15 832.85 22-May-15 903.85

8-Apr-15 865.9 25-May-15 894.5

9-Apr-15 895.1 26-May-15 884.6

10-Apr-15 904.35 27-May-15 885.3

13-Apr-15 922.5 28-May-15 875.8

15-Apr-15 923.65 29-May-15 877

16-Apr-15 928.35 1-Jun-15 902.25

82


BEFORE AFTER

Average 862.01 883.0783

Variance 1021.257 170.9024

Observation 30



Df 29

t Stat -3.17344




Interpretation:



(Mean) of RELIANCE Ltd before and after announcement of result.








test of the share price of RELIANCE Ltd as its P value is 0.004 which is smaller than

table value 0.05.


83


BEFORE AFTER

28-Feb-15 2675.25 17-Apr-15 2474.85

2-Mar-15 2669.4 20-Apr-15 2428.8

3-Mar-15 2776 21-Apr-15 2427.05

4-Mar-15 2746 22-Apr-15 2445.1

5-Mar-15 2696.45 23-Apr-15 2457.25

9-Mar-15 2646.8 24-Apr-15 2493.05

10-Mar-15 2642.7 27-Apr-15 2500.2

11-Mar-15 2606.55 28-Apr-15 2495

12-Mar-15 2619.05 29-Apr-15 2487.3

13-Mar-15 2582.35 30-Apr-15 2463.7

16-Mar-15 2562.3 4-May-15 2481.55

17-Mar-15 2583.7 5-May-15 2517.85

18-Mar-15 2559.35 6-May-15 2463.05

19-Mar-15 2596.25 7-May-15 2545.25

20-Mar-15 2610.95 8-May-15 2527.25

23-Mar-15 2617.15 11-May-15 2556

24-Mar-15 2591.3 12-May-15 2522.9

25-Mar-15 2573.75 13-May-15 2515.4

26-Mar-15 2513.1 14-May-15 2499.25

27-Mar-15 2514.8 15-May-15 2511.15

30-Mar-15 2564.15 18-May-15 2520.4

31-Mar-15 2553.95 19-May-15 2512.7

1-Apr-15 2542.65 20-May-15 2557.05

6-Apr-15 2547.3 21-May-15 2555.5

7-Apr-15 2585 22-May-15 2617.9

8-Apr-15 2641.4 25-May-15 2601

9-Apr-15 2664.55 26-May-15 2608.85

10-Apr-15 2653.75 27-May-15 2615.25

13-Apr-15 2655.5 28-May-15 2609.5

15-Apr-15 2627.75 29-May-15 2610.3

84


BEFORE AFTER

Average 2613.973 2520.68

Variance 3882.994 3231.918

Observation 30



Df 29

t Stat 5.507237




Interpretation:



(Mean) of TCS Ltd before and after announcement of result.




The correlation between before and after share price of TCS Ltd is -0.21 so it indicates

the negative correlation between share price of TCS Ltd before and after the




0.05.



85

Table 4.49 Represent comparison of net profit and share price of Coal

India Ltd

Quarter Net Profit Share Price

Quarter 1 485.47 347.83

Quarter 2 1235.39 326.02

Chart 4.1 Generate comparison of net profit and share price of Coal

India Ltd

Above table 4.49 and chart 4.1 shows that, net profit of the Coal India Ltd in Q2 increases

60.70% but the share price of the Coal India Ltd in same quarter reduced 6.69%.

Means there is no relation of result and share price. There are other factor may impact on

share price of the company. So company’s performance does not impact to share price.

0

200

400

600

800

1000

1200

1400

Quarter 1 Quarter 2

Generate Share Price & Net Profit of Q1 & Q2

Net Profit

Share Price

86

Table 4.50 Represent comparison of net profit and share price of Infosys

Ltd


Quarter 1 2897 1102.91

Quarter 2 6306 1106.05

Chart 4.2 Generate comparison of net profit and share price of Infosys

Ltd

Above table 4.50 and chart 4.2 shows that, Q2 net profit of the Infosys Ltd increases

54.06% but the share price of the Infosys Ltd reduced 0.28% in same quarter.

So, company’s performance does not impact to share price. There may be other factor

impact to the share price.

0

1000

2000

3000

4000

5000

6000

7000

Quarter 1 Quarter 2


Net Profit

Share Price

87

Table 4.51 Represent comparison of net profit and share price of ITC

Ltd


Quarter 1 2265.44 320.7

Quarter 2 2431.25 335.57

Chart 4.3 Generate comparison of net profit and share price of ITC Ltd

From above table 4.51 and chart 4.3, it is found that Q2 net profit of ITC Ltd goes up to

6.82% and share price of ITC Ltd increase 4.43%.

There is a positive relationship between company’s performance and share price. So,

company performance impact on share prices.

0

500

1000

1500

2000

2500

3000

Quarter 1 Quarter 2


Net Profit

Share Price

88

Table 4.52 Represent comparison of net profit and share price of ONGC

Ltd


Quarter 1 5459.9 321.11

Quarter 2 4842.02 228.94

Chart 4.4 Generate comparison of net profit and share price of ONGC

Ltd

The above table 4.52 and chart 4.4, interpret that net profit of the ONGC is -12.76% and

share price is also decrease upto 40.26%.

So, it is interpret that there is relationship between net profit and share prices. It means

little change in result of company leads more changes in share price.

0

1000

2000

3000

4000

5000

6000

Quarter 1 Quarter 2


Net Profit

Share Price

89

Table 4.53 Represent comparison of net profit and share price of

Reliance Industry Ltd


Quarter 1 6318 930.49

Quarter 2 6561 950.21

Chart 4.5 Generate comparison of net profit and share price of Reliance

Industry Ltd

g

Above table 4.53 and chart 4.5 indicate that net profit of Reliance Industry Ltd Increase

3.70% and share price rise upto 2.08%.

Hence, it represent that there is a relationship between net profit and share prices of

company.

0

1000

2000

3000

4000

5000

6000

7000

Quarter 1 Quarter 2


Net Profit

Share Price

90

Table 4.54 Represent comparison of net profit and share price of TCS

Ltd


Quarter 1 5488.97 2567.24

Quarter 2 5698.45 2460.31

Chart 4.6 Generate comparison of net profit and share price of TCS Ltd

Above table 4.54 and chart 4.6 show that Q2 net profit of TCS Ltd increase 3.68% but

share price of TCS Ltd decrease -4.22%.

Hence, company’s Performance does not impact on share price. May be other factor

impact on share price. Even share price is reduced because of negative global cues.

0

1000

2000

3000

4000

5000

6000

Quarter 1 Quarter 2


Net Profit

Share Price

91

Table 4.55 Represent comparison of net profit and share price of Coal

India Ltd


Quarter 3 672.55 307.76

Quarter 4 9269.23 405.26

Chart 4.7 Generate comparison of net profit and share price of Coal

India Ltd

From above table 4.55 and chart 4.7 it is found that Q4 net profit of Coal India Ltd goes

upto 92.74% and share price of Coal India Ltd increases 24.06%.

It is indicate that performance of company impact the share price but there are other

factors which might be impact to company’s share price.

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

10000

Quarter 3 Quarter 4


Net Profit

Share Price

92

Table 4.56 Represent comparison of net profit and share price of Infosys

Ltd


Quarter 3 3183 1129.83

Quarter 4 3024 1196.1

Chart 4.8 Generate comparison of net profit and share price of Infosys

Ltd

Above table 4.56 and chart 4.8 represent that Q4 net profit of Infosys Ltd reduced 5.26%

but the share price of Infosys Ltd increase upto 5.54%.

Hence, it interpret that there is impact to share price of the company. There may be some

positive global clues impact the share price.

0

500

1000

1500

2000

2500

3000

3500

Quarter 3 Quarter 4


Net Profit

Share Price

93

Table 4.57 Represent comparison of net profit and share price of ITC

Ltd


Quarter 3 2652.82 309.16

Quarter 4 2361.18 309.75

Chart 4.9 Generate comparison of net profit and share price of ITC Ltd

From above table 4.57 and chart 4.9 it is found that net profit of ITC Ltd goes upto -

12.35% and in opposite share price of ITC Ltd increase 0.19%.

So, it indicates that performance of company impact the share price.

0

500

1000

1500

2000

2500

3000

Quarter 3 Quarter 4


Net Profit

Share Price

94

Table 4.58 Represent comparison of net profit and share price of ONGC

Ltd


Quarter 3 1285.62 206.79

Quarter 4 3935.07 310.02

Chart 4.10 Generate comparison of net profit and share price of ONGC

Ltd

The above table 4.58 and chart 4.10, show that Q4 net profit of ONGC is highly increase

67.33% but the share price of ONGC only increase 33.30%.

It interprets that company’s performance impact the share price.

0

500

1000

1500

2000

2500

3000

3500

4000

4500

Quarter 3 Quarter 4


Net Profit

Share Price

95

Table 4.59 Represent comparison of net profit and share price of



Quarter 3 7218 971.35

Quarter 4 6243 883.08

Chart 4.11 Generate comparison of net profit and share price of


The above table 4.59 and chart 4.11, represent that Q4 net profit of Reliance Industry Ltd

goes down upto -15.62% and share price of Reliance Industry Ltd also reduced 9.10%.

So, it interprets that there is relationship between net profit and share prices of company.

0

1000

2000

3000

4000

5000

6000

7000

8000

Quarter 3 Quarter 4


Net Profit

Share Price

96

Table 4.60 Represent comparison of net profit and share price of TCS

Ltd


Quarter 3 5956.72 2306.22

Quarter 4 3457.26 2520.68

Chart 4.12 Generate comparison of net profit and share price of TCS

Ltd

From above table 4.60 and chart 4.12, indicate that Q4 net profit of the TCS Ltd is reduce

72.30% but the opposite share price increase 8.51%.

It is indicate that company’s performance does not impact on its share price.

0

1000

2000

3000

4000

5000

6000

7000

Quarter 3 Quarter 4


Net Profit

Share Price

97

FINDINGS

1) Q1 result of Coal India Ltd, Infosys Ltd, ITC Ltd, ONGC, Reliance and TCS Ltd

is not impacted on the share prices or there is no significance difference in the

share prices of this companies whose P value is 4.62, 0.78, 1.63, 6.10, 1.70 and

0.48 respectively which is rejected.

2) Q2 result of Infosys Ltd, ITC Ltd, ONGC, Reliance and TCS Ltd of Q2 is not

impact on share prices whose P values is 0.76, 0.87, 1.63, 4.58 and 9.42

respectively which is rejected whereas Coal India Ltd is impact on share prices

whose P values is 0.006 respectively which is accepted.

3) Q3 result of Infosys Ltd, ONGC and TCS Ltd of Q3 is not impact on share prices

whose P values is 6.80, 1.90 and 1.06 respectively which is rejected whereas Coal

India Ltd, ITC Ltd and Reliance Ltd is impact on share prices whose P values is

0.08, 0.0004 and 0.01 respectively which is accepted.

4) Q4 result of Coal India Ltd, Infosys Ltd, ITC Ltd and TCS Ltd of Q4 is not impact

on share prices whose P values is 1.64, 1.64, 4.33 and 6.2 respectively which is

rejected whereas ONGC and Reliance Ltd is impact on share prices whose P

values is 0.0001 and 0.004 respectively which is accepted.

5) There is a increase in net profit and increase in share prices of Infosys Ltd, ITC

Ltd and Reliance Industry Ltd in Q1 and Q2, and whereas there is a decrease in

net profit and share price of ONGC.

6) In Q3 and Q4 there is a increase in net profit and increase in share price of Coal

India Ltd and ONGC, whereas decrease in Reliance Industry Ltd.

7) In Q1 and Q2 there is a positive correlation between the share prices of Coal India

Ltd and TCS Ltd whereas the is a negative correlation between the Infosys Ltd,

ITC Ltd and ONGC companies.

8) In Q3 and Q4 there is a negative correlation between the share prices of Coal

India Ltd, Infosys Ltd and Reliance Ltd.

98

CONCLUSION

From this study researcher conclude that company’s interim result impact on stock prices,

means if interim result is strong or positive then stock price also increases whereas if the

interim result is weak or negative then stock price also decreases. Sometimes interim

result has no any relation with stock prices so we can say that interim result not impact on

stock prices.

Likewise we studied the relationship between change in net profit and change in share

prices. Most of the company such as there is a relationship between the net profit and

stock price. But in such cases there is no relationship between the net profit and stock

prices of the company.

From the study it found that quarterly result impacted on stock price of some companies

but in some companies the result is not impact on stock price of that same company.

Hence, the study shows that there are so many other factors which impact on stock prices.

99

RECOMMENDATIONS

It is recommended that investor can invest in companies on the basis of quarter results

performance. There are so many factor which also affect the share price of the company

apart from company’s fundamentals. Investors also have to check all other economic

factors which can affect the share price of the company. Investors have to check future

scope of the company, industry and economy in which company operates its business. As

show in the comparison of Q1 and Q2 ITC Ltd increase in net profit and share price but,

in Q3 and Q4 the same company reduced in net profit and increase in share price.

100

BIBLIOGRAPHY

Books:

1. Prasanna Chandra, (financial management Theory and practices), Tata

McGraw, New Delhi (2004), 6th edition.

2. Rajni sofat preeti hiro, (Strategic Financial Management), Asoke K.

Ghosh, New Delhi (2011).

Websites:

1) http://www.4-traders.com/TATA-CONSULTANCY-SERVICES-

9743454/calendar/ (15/03/2016)

2) http://www.4-traders.com/RELIANCE-INDUSTRIES-LIMIT-9058833/calendar/

(15/03/2016)

3) http://www.4-traders.com/INFOSYS-LTD-9743342/calendar/ (15/03/2016)

4) http://www.4-traders.com/ITC-LTD-9743470/calendar/ (15/03/2016)

5) http://www.4-traders.com/COAL-INDIA-LTD-9060008/calendar/ (15/03/2016)

6) ONGC:

http://www.ongcindia.com/wps/wcm/connect/ongcindia/home/media/press_rel

ease/declares-results-q1fy16 (15/03/2016)

http://www.ongcindia.com/wps/wcm/connect/ongcindia/home/media/press_rel

ease/ongc-declares-results-for-q2-fy16 (15/03/2016)

http://www.moneycontrol.com/stocks/stock_market/corp_notices.php?autono=

2745601 (15/03/2016)

http://www.business-standard.com/article/news-cm/coal-india-ongc-in-focus-

ahead-of-q4-results-115052800109_1.html (15/03/2016)

https://www1.nseindia.com/products/content/equities/equities/eq_security.htm

(2/04/2016)

7) http://www.businesstoday.in/moneytoday/investment/impairment-charges-can-

affect-a-company-stock-price/story/197163.html (15/03/2016)

8) https://advisesure.com/blog/what-factors-effect-share-prices-of-company

(15/03/2016)

9) http://money.rediff.com/companies/market-capitalisation/nse

http://www.4-traders.com/TATA-CONSULTANCY-SERVICES-9743454/calendar/

http://www.4-traders.com/TATA-CONSULTANCY-SERVICES-9743454/calendar/

http://www.4-traders.com/RELIANCE-INDUSTRIES-LIMIT-9058833/calendar/

http://www.4-traders.com/INFOSYS-LTD-9743342/calendar/

http://www.4-traders.com/ITC-LTD-9743470/calendar/

http://www.4-traders.com/COAL-INDIA-LTD-9060008/calendar/

http://www.ongcindia.com/wps/wcm/connect/ongcindia/home/media/press_release/declares-results-q1fy16

http://www.ongcindia.com/wps/wcm/connect/ongcindia/home/media/press_release/declares-results-q1fy16

http://www.ongcindia.com/wps/wcm/connect/ongcindia/home/media/press_release/ongc-declares-results-for-q2-fy16

http://www.ongcindia.com/wps/wcm/connect/ongcindia/home/media/press_release/ongc-declares-results-for-q2-fy16

http://www.moneycontrol.com/stocks/stock_market/corp_notices.php?autono=2745601

http://www.moneycontrol.com/stocks/stock_market/corp_notices.php?autono=2745601

http://www.business-standard.com/article/news-cm/coal-india-ongc-in-focus-ahead-of-q4-results-115052800109_1.html

http://www.business-standard.com/article/news-cm/coal-india-ongc-in-focus-ahead-of-q4-results-115052800109_1.html

https://www1.nseindia.com/products/content/equities/equities/eq_security.htm

http://www.businesstoday.in/moneytoday/investment/impairment-charges-can-affect-a-company-stock-price/story/197163.html

http://www.businesstoday.in/moneytoday/investment/impairment-charges-can-affect-a-company-stock-price/story/197163.html

https://advisesure.com/blog/what-factors-effect-share-prices-of-company

http://money.rediff.com/companies/market-capitalisation/nse

Economy & Finance

"A Study on Impact of Quarterly Results of Top Six Companies Share Price"