Impact of Demonetisation on Bank Stock

Authors

  • Triveni P Ramaiah Institute of Management, Bengaluru, India
  • Anupama Kumari Ramaiah Institute of Management, Bengaluru, India

DOI:

https://doi.org/10.12725/ujbm.44.4

Keywords:

Demonetisation, CAAR, Bankex, Volatility

Abstract

This paper empirically examines the impact of demonetisation on Indian bank stock. On 8th November 2016, the Indian Prime Minister, Narendra Modi declared demonetisation in an unscheduled live broadcast. Currency notes of Rs 500 and Rs 1000 were demonetised from the midnight of 8th November 2016. This was issued to curb black money and corruption. During demonetisation, the index values of the stock market SENSEX, NIFTY and BANKEX went down. This research mainly focusses on how demonetisation affected the stock price of the top Indian banks. With the help of CAAR, change in return and change in volatility, the effect of demonetisation on the stock market was calculated. Furthermore, an understanding of the impact of demonetisation on bank stocks was attempted. The evaluation helped in concluding that there has been no impact on the bank stocks post demonetisation.

 

 

 

 

 

References

1. Sunil, T., & Shenoy, S. V. (2017). Impact of demonetization on stocks of selected sectors – An event study. International Journal of Research in Finance and Marketing (IJRFM), 7(5), 29-38.
2. Dash, S. D., & Bagha, P. (2017). Impact of demonetization on stock price movements in banking sector of India. International Journal of Research and Scientific Innovation (IJRSI), IV(VIIS), 33-36.
3. Kakkad, V. P. (2017). An empirical study on impact of the demonetisation and cashless transaction on the respondents of Rajkot city. Abhinav National Monthly Refereed Journal of Research in Commerce& Management, 6(3), 1-9.
4. Veerakumar, K. (2017). A study on people impact on demonetization. International Journal of Interdisciplinary Research in Arts and Humanities, 2(1), 9-12.

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Published

2018-07-01

How to Cite

P, T., & Kumari, A. (2018). Impact of Demonetisation on Bank Stock. Ushus Journal of Business Management, 17(3), 27-38. https://doi.org/10.12725/ujbm.44.4