Management and Applied Sciences www.ijetmas
International Journal of Engineering Technology
Purpose-This study has been done to analyze the demonetization effect on performance and volatility of the sectoral indices in India. Methodology-The sample includes twelvesectoral indices of NSE i.e. Auto index, Bank index, Energy index, Financial Services index, FMCG index, IT index, Media index, Metal index, Pharma index, Private Bank index, PSU Bank index, and Reality index and Nifty 50 index. Data consists of three months' daily closing values of sectoral indices of NSE and Nifty 50 index.
... and Nifty 50 index. Data period has been divided into two segments i.e. pre demonetization period from 7 th August to 7 th November, 2016 and post demonetization period from 8 th November, 2016 to 8 th February, 2017. Analytical tools comprise paired T-test, Mann-Whitney U test/ Wilcoxon rank sum test, Shapiro-wilk test and beta coefficient. Findings-The test results reveal that all sectoral indices perform significantly different in pre and post demonetization periodsexcept the PSU bank index. Though, in case of volatility of the sectoral indices results exhibit no significant difference in pre and post demonetization periods. The analytical results exhibit that after demonetization the closing values of all sectoral indices plummet, except the energy and metal indices where closing values show a soar after demonetization.