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Volume 7, Issue 2

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Volume 7, Issue 2

Factors that Determine the Market Prices of NIFTY 200 Manufacturing Companies: A Literature Review

Author(s)

KRISHNA JYOTREDDY MAGULURI

Affiliations

Symbiosis Institute of Business Management(SIBM), Hyderabad

Abstract

This is a paper to determine which factors have an impact on equity share prices of NIFTY 200 manufacturing companies and also to study the effects of such factors on equity share prices. This paper attempts to determine which factors play a significant role in equity share price determination. These factors will be analysed from a company, industry and macroeconomic perspective. A wide variety of databases and journals in fields such as business management, finance and economics were surveyed to acquire the desired literature for the current study. The conceptual paper findings identify the various factors that have an influence on perceptions (values, environmental factors, and media) and also whether investor’s unique characteristics has bearing on their investment decisions towards equity shares. Conclusions from the literature state that certain factors play a key role in how prices of equity shares are determined and that the investor’s understanding of the currently available information should be considered. The final sections provide the methodology to be used for carrying out the present study on the effects of fundamental variables on equity share price determination and the investor’s attitudes and perceptions towards equity investments are provided.

Keywords

NIFTY 200; Firm Specific Factors; Industry Specific Factors; Macroeconomic Factors; Investor Perception

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