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Asian Journal of Management
Year : 2017, Volume : 8, Issue : 3
First page : ( 507) Last page : ( 515)
Print ISSN : 0976-495X. Online ISSN : 2321-5763.
Article DOI : 10.5958/2321-5763.2017.00082.8

Impact of union budget on CNX auto and CNX bank

Dr. Gakhar Divya Verma1,*, Ms. Mohun Tina2,**, Ms. Pandey Anita2,***

1Assistant Professor, University School of Management Studies, Guru Gobind Singh Indraprastha University, Dwarka, New Delhi, India

2Student, University School of Management Studies, Guru Gobind Singh Indraprastha University, Dwarka, New Delhi, India

*Corresponding Author E-mail: divya.ipu@gmail.com

** tinamohun@gmail.com

*** pandey.anita221993@gmail.com

Online published on 22 September, 2017.


Most of the past researches have been done on NIFTY index, and very few of them are on sectoral indices. This study focuses on CNX AUTO and CNX BANK. The paper empirically examines the effect of Union Budget on average returns provided by CNX Auto and CNX Bank. The period covered under study is from 2011 to 2015. This period includes a total of 5 Union Budgets and 1 Interim Budget. To study the impact of union budget a total of 60 trading days before and after the budget is considered and this time period was segregated into long term (30 days), medium term (10 days), short term (3 days) prior and subsequent to the declaration of the union budget. The study answers the following queries: Is the volatility in stock market induced by the budget or is it the general market volatility which we observe in any normal day? And is the stock market response to a Budget is immediate or should the market be given ‘some time’ to digest the information? The statistical tools used are paired T-test and F-test. Paired T-test is conducted on average returns and F-test is conducted on variances. The findings conclude that there is no impact of budget on the returns of long term, medium term and short term period. Volatility, on the other hands for both CNX Auto and CNX Bank does not change from long term pre budget period to all the post budget period. Further, it provides that there is no increase in the volatility as time increases in post budget period. The implication of this paper is that investor should continue with his strategy on investing in CNX Auto and CNX Bank around the budget period as there is no significant change in the volatility during budget period.



CNX Auto and CNX Bank, Budget, Volatility/Variances, Returns, Pre-budget period and Post-budget period.


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