EQUITY PRICE DETERMINANTS OF INDIA'S NIFTY NEXT 50 INDEX FIRMS'

Abstract

An investor must perform research on a stock before investing in it. It becomes critical for a financially savvy investor. As a result, stock prices have long been a source of attraction. Researchers have worked hard to identify the elements influencing stock prices and returns. This paper is an attempt to identify the factors predicting the market price of Equity in India. The secondary data about 2017 to 2022 of NIFTY's Next 50 index companies is analyzed using OLS regression. The findings of the regression are ratified through a qualitative approach by the semi-structured open-ended survey and interviewing experts. The obtained responses are transcribed and coded. Matrix coding has been performed using a qualitative tool such as NVivo to understand the pattern of codes. The study finds that dividend rate, book value, and return on net worth are statistically significant and positively influence the market price of sample firms. Debt to equity ratio has a negative impact on market price. Economic value added (EVA) was found to be a new variable that significantly impacted the market price of shares. The study findings are helpful to the market participants to make wise and knowledge-based investment decisions. The study's findings will also add to the existing body of knowledge regarding stock valuation.