A study on relationship between Market Price & Earnings per Share with reference to selected companies

The most basic factors that influence price of equity share are demand and supply factors. If most of the people start buying then prices move up and if people start selling prices go down. Government policies, firm’s and industry’s performance and potentials have effects on demand behaviour of investors, both in the primary and secondary markets. The factors affecting the price of an equity share can be viewed from the macro and micro economic perspectives. Macro economic factors include politics, general economic conditions - i.e. how the economy is performing, government regulations, etc. So, the Present study tries to find out the relationship and the impact of EPS on Market price of selected companies..