The Share Price Movement Of Indian Banking Shares, can alter the GDP, based on the interest rate

Abstract

The stock market is the altimeter of Indian budgeting. Trading in the Stock market is subject to market risk, and therefore returns can be affected, although it provides diversification to the portfolio of Retail investors, HNI & FII clients. The investment pattern of each category affects the growth of the country. As investments are reduced due to the risk aversion factor, the GDP fell to 6.0 percent for Q1 FY23, which is the lowest of the two years as per the economic survey of the Ministry of finance, resulting in a domestic slowdown in Q2 FY23. This research work aims to study the effects of an array of fundamental factors like – interest rate risk, counterparty risk, and regulatory risk on the share price movement of Top 5 (SBI, Canara Bank, Union Bank of India, Punjab National Bank, Bank of Baroda) performing public Banking sector stocks listed on the Indian stock exchange. So, the long-term investors should look on to the fundamentals and invest wisely to earn even in the current economic slowdown situation of FY 23. The results suggest that these three factors affect most of the share prices, namely- interest rate risk, counterparty risk, and regulatory risk and explained only interest rate risk taking into consideration.