Prediction Power of HRITHIK Stocks in the Movement of Stocks On or Before Pandemic

Abstract

Where ‘HRITHIK’ stocks stands for HDFC Bank, Reliance Industries, Infosys, TCS, HDFC, ITC and Kotak Mahindra Bank. HRITHIK companies are those companies that are highly popular amongst investors for making their investment decisions for the very basic reason that they are one of the leading companies in their respective industries. It is also rumoured that the stocks of these companies carry some influencing power on the movement of the overall stock market in India. So the present study aims to answer the phenomenon of whether the stocks of these seven companies have some effects on the movement of the stock market or not. The study further focuses to answer the prediction of these stocks during and before pandemic. Pandemics have hit the world economies many a times in the past which have drained the economic growth almost every time. COVID-19 is yet another pandemic which has hit the world economies very badly for almost a year and even till date, one is not free from the harm caused by this virus despite the fact the government has taken multiple steps to control it. Therefore, the present study attempts to find out whether stocks of these seven companies has any predicting power on the overall movement of the stock market w.r.t. India or not, before and during COVID-19 pandemic. The objective of the research is to help investors to enable them to take their investment decisions in these seven companies. For the purpose of analysis, data for two financial years have been taken and is segregated into two different period viz. pre pandemic and during pandemic. Data from 2019 to 2021 is taken from yahoo finance and official website of NSE which is further divided into two time frames i.e. before pandemic, from April 2019 to March 2020 and during pandemic i.e. April 2020 to March 2021. Multiple regression is applied with the help of EViews and the comments are being made on the finding. It is observed that even though these seven companies are faddy amongst investors in taking their investment decisions but the returns of these companies have not significant explanatory power on the movement of stock market or overall stock market performance before and during pandemic.