जर्नल ऑफ़ स्टॉक एंड फॉरेक्स ट्रेडिंग
खुला एक्सेस

अमूर्त

A Study on Stock Return Performance around Earnings Announcements in the Indian Stock Market

Uday K Jagannathan*, Cheshire H

According to the semi-strong form of Efficient Market Hypothesis (EMH), any public information should be reflected in the price, and earnings announcement as one type of information. This research focuses on the Nifty 50 stock index, where no researches have been realized so far. The main aim of the research is to study stock returns behavior during quarterly earnings announcement in the Nifty 50 market. For this study secondary data of the selected sample companies has been collected. A sample of 25 top market capitalization companies in the Nifty 50, their stock price and quarterly earnings announcements of the year 2021-2022 were taken for this study.

The study employs event study methodology to measure the impact of the earnings announcement on the stock price movement. The research uses technical indicators to analyze the market behavior in the event period. The results showed an anomaly in the bad earnings surprise sample in which the cumulative abnormal returns continuously increased after the event. The Nifty 50 market was analyzed using technical indicators and it was found that the market was bullish in nature so even though the companies reported bad earnings since the whole market was raising the stock prices also rose. This was further confirmed by doing an event study on a neutral market which showed no anomalous reaction. In conclusion it was found that the type of market influences the movement of stock price behavior. The results of event study from a neutral market were found to be satisfactory and showed no anomalous reaction.