A study on Bank and IT nifty influence on Nifty 50

NIFTY 50 is one of the benchmark indices which is been used in India. The index is built upon by the companies which are represented from various sectors. Each sector is given separate weightage depending upon the representations from each sector. This paper focused on to identify Pairwise Granger Causality between NIFTY 50 Index, NIFTY Bank Index and NIFTY IT Index. The researcher also focused on to identify the influence of Bank NIFTY and IT NIFTY and NIFTY 50 Index. The research was carried out with a total of 532 observations (closing value of each index) of spanned across January 2018 – February 2020. The study revealed that Bank NIFTY Granger Cause IT NIFTY and not vice-versa. NIFTY 50 Index is highly influenced by Bank NIFTY IT NIFTY.