IJFANS International Journal of Food and Nutritional Sciences

ISSN PRINT 2319 1775 Online 2320-7876

AN EMPIRICAL STUDY ON DYNAMIC RELATIONSHIP BETWEEN IT SECTOR AND NSE

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Mahabub Basha S, Dr. N Krishnamoorthy

Abstract

Global markets always play key role on IT sector, this we have seen in global financial crises 2008. Predicting the IT sector stocks along with Nifty index is possibly one of the very toughest exercises in Indian Capital Markets. The present study focuses on Short- & Long-term dynamics of the IT industry in Indian capital market. The IT sector along with Nifty Index Regular closing monitory value is a sample to the analysis between June 2020 and May 2022. In the paper, ADF test is embarked to examine immovability of data and is evident that it is un-movable at initial difference level. The Johansen co-integration test of Johansen is applied to assess long-term balance of Nifty Index analysis with the IT sector and to define the co-integration of the selected components. Granger causality test is used to regulate causal & short-term relationship of the variables with the corresponding bidirectional of the causality among the variables.

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