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Governmental Announcements and Indian Stock Market: Evidence from Indian Manufacturing Sector


  • Mahesh Dahal
  • Joy Das


The Indian Manufacturing sector lags behind in contributing to economic development, as compared to its peer nations and therefore, to boost the sector's contribution to the economy and to transform the economy into a cashless economy, the government of India had announced three major steps, Make in India, Demonetization and GST. In the present study using event study methodology, the immediate impact of the announcements on the stock of the companies from the Indian Manufacturing sector is examined and found that the announcement of the Make in India positively influenced the security returns. In contrast, negative impact on the security prices is witnessed on the announcement of Demonetization, whereas the GST implementation has no impact.

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  • Mahesh Dahal & Joy Das, 2021. "Governmental Announcements and Indian Stock Market: Evidence from Indian Manufacturing Sector," The Review of Finance and Banking, Academia de Studii Economice din Bucuresti, Romania / Facultatea de Finante, Asigurari, Banci si Burse de Valori / Catedra de Finante, vol. 13(2), pages 134-146, December.
  • Handle: RePEc:rfb:journl:v:13:y:2021:i:2:p:134-146

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    References listed on IDEAS

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