Factors Influencing Stock Returns of IT Companies
Stock market basically is an electronic platform where the share of the companies are listed and traded. The share prices of the listed companies fluctuate on the basis of various factors which affect and build the sentiments of markets and investors. This study is mainly emphasized to explore the macro economic variables and company specific variables which affect the stock returns of selected IT companies. In India, we have a very low level of economic literacy and if we quantify it then in a population of more than 125 Crore, less than 2% of population actually invests in stock market. Such low participation is because of the above mentioned low level of economic literacy plus huge fluctuations in the market due to several factors. India is pioneer in Information Technology industry and IT companies of India are one of the greatest contributors in total export as well as fame for the country. Being a pioneer industry, shares of IT companies are always remain in the limelight of stock market. Further return on this is again fluctuative due to industry and market factors. Since so many fluctuations exist in the stock market, it creates an urge to study about those factors which are responsible for the ups and downs in the market.