A STUDY AND ANALYSIS OF SELECTED STOCKS OF BANKING SECTOR LISTED ON BSE/NSE INDIA DURING CRISIS

Investment in the equity market is always considered risky. Market sentiment is one of the factors that move stock prices. The present study aims to understand the impact of economic variables during crisis on the bank stock prices during COVID crisis. Analysis of banking stocks were considered with economic variables viz. Nifty, Sensex, Exchange Rate, FII movement, and G-sec coupon rate. The significance of variables is tested by regression and correlation test using SPSS. Tracking the performance of Nifty give direction of future corrections in the prices of bank stocks. After a sharp fall in the market, there is correction in the stock prices for private sector banks but not for public sector bank. During the first half of the study, there is a strong correlation and between Nifty, Sensex and selected stocks but moderate with FII, G-Sec rate and Exchange rate. During the second half of the study, the relation between the stock prices and the economic variables differs from bank to bank