Impact of Earnings per Share on Market Price of Share with Special Reference to Selected Companies Listed on NSE

The study entitled “Impact of Earnings per Share on Market price of share with special reference to selected companies listed on NSE ”was undertaken to find whether the Earnings per Share and market price of the share are related or not, whether EPS has any effect on the market price of the share. The most important factors that influence price of equity share are demand and supply. If investors start buying shares then prices move up and if investors start selling shares prices go down. There are various factors that may affect the market price pf share such as Government policies, firm's and industry's performance. In this study the impact of Earnings per Share on share price of selected companies have been analysed, the strength of association of variables have also been measured. The study was conducted by collecting data from various websites. The selected companies were those companies which are listed and actively traded with high volumes in NSE (NIFTY 50). The data were collected from 5 companies from different sectors for the period of 2008-2017for the study. The collected data was exploratory in nature which was measured through simple Correlation analysis and regression analysis. The analysis shows that share price of most of the companies is affected by the independent variable i.e. EPS.