EXPLORING FINANCIAL PERFORMANCE'S INFLUENCE ON INDIAN STOCK PRICES

This research paper aims to investigate the impact of financial performance on the stock prices of three selected Indian companies, namely Maruti Suzuki India Ltd, Reliance Industries Ltd, and Tata Consultancy Services Ltd. The study recognizes the significance of financial performance in determining stock price movements, with the overarching goal of shedding light on the intricate relationship between these two variables. In recent years, stock markets have become increasingly important as vehicles for wealth creation, attracting a diverse array of investors. Consequently, understanding the dynamics of stock price movements has garnered great interest. This study employs a sample size consisting of three prominent Indian companies, each representing different sectors, to examine the link between financial performance and stock prices. The chosen companies are Maruti Suzuki India Ltd from the automotive sector, Reliance Industries Ltd from the conglomerate sector, and Tata Consultancy Services Ltd from the IT sector. The research utilizes data spanning the last five years, from 2018–19 to 2022–23, to assess the financial performance of these companies and its impact on their stock prices. It aims to provide insights into the intricate interplay between financial metrics such as asset turnover ratio and net profit margin and the fluctuations observed in stock prices. This study underscores the complexity of stock price determination and emphasizes the need to consider multiple factors, including market sentiment, industry conditions, and external economic variables, in addition to financial performance. Understanding the relationship between financial performance and stock prices is of paramount importance for investors, analysts, and policymakers, as it informs decision-making processes, investment strategies, and regulatory measures. The findings of this research contribute to a holistic comprehension of stock market dynamics in the context of selected Indian companies and their financial performance, offering valuable insights into the multifaceted nature of stock price movements.