Market Dynamics and Institutional Behavior in NSE NIFTY50 Index Rebalancing

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This presentation explores the market impact of NIFTY Index rebalancing between 2006 and 2025, utilizing event study methodology to analyze Abnormal Returns (ARs) and Cumulative Abnormal Returns (CARs). It highlights trends in institutional ownership and diminishing Index effects in India. Findings reveal evolving market behaviors, such as speculation and efficiency, with distinct shifts in Foreign Institutional Investors' (FII) and Mutual Funds' (MF) activities. Limitations include a focus...