“Impact of Demonetisation on Indian Stock Market”

Demonetization is the act of stripping a currency unit of its status as legal tender. It occurs whenever there is a change of national currency: The current form or forms of money is pulled from circulation and retired, often to be replaced with new notes or coins. On 8 November 2016, the Government of India announced the demonetisation of all 500 and 1, 000 banknotes. The main objective is to know the Impact of Demonetisation on Indian Stock Market. The research design is descriptive research design. The secondary data was mainly collected from RBI's web site and nseindia.com. This study covers a period of only 50days, 30 days and 10days before and after 8-november-2016. we used Pair sample t-test and regression to analyze the data. The result of the study indicate that short term period (before and after 10 days and 30 days) effect of demonetisation is highly negative correlation and gradually (before and after 50 days) there is no correlation. From this study we can say that demonetisation doesn't impact on impact on Indian stock market