Study of Factors Influencing the Stock Prices of Selected IT, Cement and Pharmaceutical Companies in Indian (2011-2016)

Abstract

This paper investigate the factors which influence the stock price of any company with a focus on selected Cement, Pharmaceutical and IT company. The future price of any stock depends on certain factors such as EPS, DPS and PE. The studies explain that dividend and P/E Ratio impact the stock prices but they have not taken the EPS as factor responsible for stock price. So for this paper we have taken three factors EPS, Dividend and Price earnings Ratio as factors which may influence the price of stock with specific reference to Cement, Pharma and IT sector companies. For this research paper, research methodology is exploratory in nature. The statistical tools like correlation and regression were used to analyzed the data. It was observed that EPS, DPS and PE highly correlated to the future price of many companies of different sectors however few are influenced by the PE Ratio.