ANALYSING THE CORRELATION: STOCK PRICE DYNAMICS AND FINANCIAL PERFORMANCE IN INDIA'S IT SECTOR

Abstract

The purpose of this study is to look into the relationship that exists between stock prices and financial performance in the IT sector of India. Three well-known Indian IT businesses' financial performances are being analysed, and the effect of these analyses on the stock prices of the companies is being investigated. Based on their market capitalization, Tata Consultancy Services Ltd., Infosys Ltd., and HCL Technologies Ltd. make up the sample that was picked. The study examines the relationship between stock prices and financial success in the chosen IT companies during a five-year period, from 2018–19 to 2022–23. Ratio analysis and regression analysis are the two main techniques used in the analysis. Through an extensive examination of financial metrics and stock values, this research seeks to offer important insights into the workings of the Indian IT sector. The results will have important ramifications for investors, business professionals, and scholars alike and advance knowledge of the relationship between financial performance and stock prices of the chosen IT companies.