A Study of the Impact of Information Technology on Stock Market Indices

A Stock market index is a leading indicator of the performance of the overall economy or a sector of the economy through providing up to date information. Indices serve as a benchmark for measuring the performance of stocks or portfolios. Indian Stock Market has many indices and it contains many companies and every index is important. Investors, Stakeholders and Policy Makers invest the money in stock market, especially in sectoral indices, and gain more profits. Information Technology (IT) industry has played a major role in the Indian economy during the last few years and the same is even reflected in the performance of the companies individually as also through their respective indices. A number of large, profitable Indian companies today belong to the IT sector and a great deal of investment interest is now focused on the IT sector. Information technology provides mass access to the stock market, while improving efficiencies which enables investors to make informed decisions. Technology and ebusiness have mpacted the stock market in several significant ways. This paper proposes to analyze the impact of BSE TECk index, BSE IT index and CNX IT index on Sensex and Nifty respectively. The appropriate regression test would be applied to test the data.

Keywords: Information technology, indices, SENSEX, Nifty

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