Impact of Reliance Industry Stock Price on NIFTY 50 – Granger Causality Test

It is well known for the Indian Equity Market NIFTY 50 is the National Stock Exchange of India's benchmark broad based stock market Index. Full form of NIFTY 50 is "National Stock Exchange Fifty". Generally it represents the weighted average of fifty Indian Company Stocks; but right now it is fiftyone stocks and is one of the main stock indices in India. The study is an attempt to find the impact of Reliance Industries Limited(Reliance) stock price (one of the 51 stocks enlisted under NIFTY 50) on NIFTY 50. We have collected data mostly from i.) NSE and ii.) Yahoo finance. Annual Data(Daily) for the period of 2008-2018 have been utilized. The data comprises of Open, High, low, Close and Volume Traded. For this empirical study Closing values are considered. This study employs Testing of parameters, Hypothesis, and Granger Causality Test an econometric tool to analyse the cause effect relationship. It will be helpful for rational investors to understand the moving trend of NIFTY 50 with respect to Reliance stock price movement and also to understand the current position of Reliance in Indian Stock Market. We used EViews for detailed analysis.