Twin Economic Policy on Indian Exports Companies

Policy of a state like monetary, customs duties, taxes, Repo rate, budget, supply of money play very crucial role in the functioning of its economy. For the nation like India the twin economic policy i.e. demonetization and Goods and Service Tax (GST) implementation has an important part to play in its Economy. So, this paper uses the stock market return of companies from the top 10 export companies which belongs to various sectors of the Indian Economy i.e. BHEL, Reliance, ITC, IOC, JSW Steel, TATA Motors, TATA Steel, Bajaj-Auto, Coal India, Hindalco to analyze the impact of demonetization and GST on their abnormal returns. This study aims to study the impact of policies and reform on the Indian Economy, and for the analysis paper is using Abnormal return calculated through CAPM model, Paired correlation and Paired t-Test of pre and post abnormal return with an event window of 10 days. Hence this study is carried out by using basic event study methodologies.