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Does Stock Market Respond to Financial Crisis?

Author Affiliations

  • 1Shri Raojibhai Gokalbhai Patel Gujarati Professional Institute of Management, Indore, MP, India

Res. J. Management Sci., Volume 5, Issue (9), Pages 1-8, September,6 (2016)


This research paper studies the impact of financial crisis on Indian stock market via stock prices in relation with financial performance of companies, listed at Bombay Stock Exchange. To achieve this objective, performance of services sector companies from BSE 30 index were scrutinized by analyzing their quarterly moving data for duration from January 2006 till December 2013, for the possible change in relationship between stock prices and financial performance. Sales, net profit, gross profit, earning per share, return on equity, gross profit margin, return on assets and average share price were taken as independent variables for study. Share price was taken as dependent variable which represents stock market. Predictive regression models were developed to analyze the change in relationship between stock prices and financial performance, probably due to financial crisis.


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