1Senior Professor, Alagappa Institute of Management, Alagappa University, Karaikudi, E-Mail: srajamohan1988@gmail.com
2Ph. D. Research Scholar, Alagappa Institute of Management, Alagappa University, Karaikudi-630 004, Tamilnadu, India. Email- astsphd@gmail.com
3Pg Student at Alagappa Institute of Management, Alagappa University, Karaikudi. E-Mail: abilaasokan@gmail.com
Online published on 10 September, 2019.
Demonetization is the act of divesting a currency unit of its status as legal tender. It is a tool to handle black money in the economy by lowering the cash circulation in the country which is directly concerned with the corruption. It directly or indirectly influences the various sectors. The effect of taking out so much money from the market is obviously affect the various sectors, which are driven by the black economy like real estate, construction, etc. But this move of government has also affected those sectors that are driven by cash because they are the first that are affected when so much money is suddenly removed from circulation. This research paper is trying to analyze the impact of demonetization on Stock market. This study is an event study to analyze the stock price of automobile sector. The result is being observed by the comparison of both pre and post-demonetization and found that there is no significant impact of demonetization on the stock market.
Demonetization, Stock Market, Event Study, OLS, RSI, Automobile sector
