A study on security price movement of Tata Motor and TVS Motor by using Relative Strength Index with reference to Trustline Securities Pvt Ltd.

TLDR: In this article, a study is presented to test the efficiency of the Indian stock market with respect information content of NSE announcement in auto mobile industry in terms of FPO (Follow on Public Issue) announcements.

Abstract: Recent developments made in the Indian economy that induce investors to interest in the market. Investors want to know the efficiency of the stock market. The small and medium investors can be motivated to save and invest in the stock market only if their securities in the market are appropriately priced. The information content of events and its dissemination determine the efficiency of the stock market. That is how quickly and correctly security prices reflect these information show the efficiency of the stock market. In India, very few studies have been conducted to test the efficiency of the stock market with respect to FPO (Follow on Public Issue) announcements, even after these studies have been conducted with different industries with different period. Hence present study is an attempt to test the efficiency of the Indian stock market with respect information content of NSE announcement in auto mobile industry. An investor ultimate feeling while investing through a share will be "FRUITFUL RETURN" & in the other hand picking the right share from the numerous different types of shares. My study comes in significance in selecting the share and making the selection worthy. This study facilitates the allocation of financial resources towards most profitable investment opportunities in taking the account of "Behaviour" of the share. Finally, my study is needed for investors to get & project the future fluctuations that are likely to occur before investing.