Mergers and Acquisitions In the Indian Banking Sector: Motivations, Valuations and Post- Merger Performance

Abstract

Dealing in the stock market requires an understanding of its VUCA characteristics, which are Volatility, Uncertainty, Complexity, and Ambiguity. This gives rise to many theories to explain these characteristics and their impacts on the stock market. One such theory is the Efficient Market Hypothesis (EMH), which challenges the methods of fundamental and technical analysis. The issue of market efficiency and how news events influence stock prices is still under discussion. By analyzing the link that lies between news, events and through stock price movements in an Indian context, this research project aims to contribute to this debate by analyzing various situations with different variables namely, in the case of corporate announcements, political events, social events, and natural disasters, and to understand the questions on the efficiency of the market as it is argued that the inefficiency in the market my exist due to many reasons, like lack of buyers and sellers, human emotions and biases, etc.