Identifying the Impact of Event and Forecasting the Price Volatility on Sectorial Indices with Special Reference to Bank Nifty PSU

Abstract

The paper is an attempt to explore the impact of an event on the price volatility on the sectorial index. The outcome of the paper helps us to understand the announcements will accept by the market or not. Market is the reflection of investors behavior. Therefore if the market accepts the announcement or information, then there will be an impact on the investor behavior. These will also the eye opener for the prospective investors avenue to enter the market. First the question to the investor mind is the future expectation of price. To justify the objective of the study, the volatility of the price will be determined by descriptive statistics and to forecast the future trend exponential smoothening is incorporated. The researcher attempts to identify the influence of the announcement or event and future trend of the price volatility of the sectorial index. The outcome of the study clarifies that variations in price will tell us the accepting of the announcement. The attempt gives a view that all the informations are not accepted by the market.