THE IMPACT OF TERMINATION ON NSE BANK SMASHING STOCKS MISTREATMENT EVENT STUDY METHODOLOGY

Abstract

To determine whether the Indian stock market is semi-strong or not, this research 
examines the exchange effect of termination on banking stocks using the quality event study 
approach. Underneath the market model, an event study is employed. Samples of twelve equities 
from the banking industry have been considered. A significant number of positive anomalous returns 
were found before termination notices were made public. When Bank of Baroda and Kanara Bank 
were shut down, the only banks with negative returns were IndusInd Bank, Axis Bank, affirmative 
bank HDFC Bank (-0.2 percent), ICICI Bank (-0.8 percent), while the only banks with positive returns 
were PNB (8.7 percent), IDFC Bank (1.3 percent), SBIN (4 percent), Kanara Bank (2.8 percent), Kotak 
Bank (1.2 percent) (0.2 percent ). As a result, there doesn't seem to be a consistent pattern of high 
abnormal returns across all of the Banking stocks.