Volatility Analysis of Select Blue Chip Companies Listed in Nifty 50 Index of India

Abstract

The stock market is sometimes referred to as a "mirror" of the country's economic health since it acts a barometer to measure the economic growth. A potential buyer sets a price, known as an offer price, for a share of stock in the stock market, and a potential seller asks for a fixed price for it. When buying or selling in the market, both the buyer and the seller agree on the asking price or bid price. A trade occurs when the bid and ask prices are equal. As a result, stock valuation is extremely important in day-to-day stock exchange transactions. A company's success is reflected in its stock price. Companies with strong results are thought to have strong demand for their stock, which will drive up the price, and vice versa. Stock price fluctuations are influenced by rumours, speculation, and short-selling, among other manipulation practices. The present research on the above backdrop will make an analysis on the volatility of blue chip companies listed in the NIFTY 50 of National Stock Exchange in India.