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Impact of Financial Ratios on Stock Price: Evidence from Indian Listed Banks on NSE

pooja-gupta

Prof. Pooja Gupta

Assistant Professor, Head Case Development & Interim Chairperson

Rane, N., & Gupta, P. (2021).
Evidence from Indian Listed Banks on NSE. REVISTA GEINTEC-GESTAO INOVACAO E TECNOLOGIAS, 11(4), 5132-5144.

Abstract

This study aims to examine the impact of financial ratios on the stock prices of companies listed on
NIFTY Bank. Nifty Bank is a sub-index of NIFTY 50 and has various listed banks included based on the
criteria given by NSE. This study data has been taken from the period 2010-2019 and taken from the
company annual reports. The analysis is done using panel data regression and other tests to verify
the best model for the dataset. The results obtained from this study show that the capital adequacy
ratio and the dividend payout ratio do not impact the stock price. In contrast, earnings per share, net
NPA ratio, and basic earnings per share, net profit margin, and net interest margin exhibited a
relationship with the stock price. In the Indian context, there is less research available on this topic,
and the idea chosen for the study is original. Along with this, the data collected for the study and the
code used for analysis is original work. New investors can use the results of this study in the Indian
stock market to analyze a stock and take proper investment decisions. Another practical usage of
this study is that banking sector companies can improve their ratios to attract new investors

Link to Article: https://revistageintec.net/article/impact-of-financial-ratios-on-stock-price-evidence-from-indian-listed-banks-on-nse/

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