Impact of Announcement of Digital India Campaign on the Price Behaviour of Banking Stocks in India

Author(s)

Dr. Kushalappa. S

Affiliations

Assistant Professor, Department of Management, Government First Grade College, Belthangady, Dakshina Kannada, Karnataka

Abstract

The banking system plays an important role in promoting economic growth not only by channelling savings into investments but also by improving allocative efficiency of resources. Nowadays banks are digitally and technologically empowered. The announcement of digital India campaign is boosted the banking industry. The digital India programme is a formalised initiative by the Government of India launched on 1 st July 2015 with an objective of connecting rural areas with high-speed internet networks and improving digital literacy. The vision of program is to transform India into a digitally empowered society and knowledge economy. It is centred on three key areas- digital infrastructure as a utility to every citizen, governance and services on demand and digitally empowerment of citizens. A stock market is the aggregation of buyers and sellers of stock, which represent ownership claims on business. The current research, is an attempt to study the impact of digital India campaign on price behaviour of banking stocks which are the most affected industry from the Digital India initiative. Since the stock market is highly sensitive, it will react immediately for the new piece of information. Hence, the current research is undertaken to find out the reaction of banking stocks for the announcement of Digital India announcement. It is concluded in the study that the event had no significant impact on the price behaviour of banking stocks in short run, midterm and long run.

Keywords

Abnormal Return, Banks, Digital India, Stock Market

References

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