Governmental Announcements and Indian Stock Market: Evidence from Indian Manufacturing Sector

Mahesh Dahal, Joy Das



The Indian Manufacturing sector lags behind in contributing to economic development, as compared to its peer nations and therefore, to boost the sector's contribution to the economy and to transform the economy into a cashless economy, the government of India had announced three major steps, Make in India, Demonetization and GST. In the present study using event study methodology, the immediate impact of the announcements on the stock of the companies from the Indian Manufacturing sector is examined and found that the announcement of the Make in India positively influenced the security returns. In contrast, negative impact on the security prices is witnessed on the announcement of Demonetization, whereas the GST implementation has no impact.


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