Evaluating the Impact of Sectoral Indices on Stock Market Performance in the National Stock Exchange

Abstract

Economic growth can be measured by the stock market index industry survey, which measures the key indicators of a country's economic development. Furthermore, analyzing various indicators assists governments and investors in using them as a reference. This paper aims to explore the capital market efficiency of the NSE sector indexes by analyzing daily stock price returns. The study seeks to evaluate the effectiveness of the weak form of the selected indicators listed in the NSE. The paper will assess market efficiency by utilizing series and autocorrelation tests and testing the selected NSE industry indexes. During the study, there were notable returns of 5% on the NIFTY Banking Index, NIFFY PSU Bank Index, and Nifty Financial Services Index.