Event Study

This study explores the connection between adoption of FinTech in the Indian Stock Markets and the efficiency of these markets using secondary data from the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) for the period 2010-2025. It uses an event study approach and GARCH-MIDAS modelling to capture the reactions of the market in response to key policy announcements and digital payment adoption milestones from the FinTech industry. The findings show that there is a considerable positive abnormal return after the policy announcement of FinTech for all market capitalizations and sectors, but with varying impacts. The study builds on the existing body of literature regarding the relationship between FinTech and Financial Markets in Emerging Economies and provides empirical evidence of the impact of technological innovations on the efficiency of the financial market and investors' decision making in such markets in the Indian context.