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Artificial Neural Network Model for Forecasting the Stock Price of Indian IT Company

  • Joydeep Sen
  • Arup K. Das
Conference paper
Part of the Advances in Intelligent Systems and Computing book series (AISC, volume 236)

Abstract

The central issue of the study is to model the movement of stock price for Indian Information Technology (IT) companies. It has been observed that IT industry has some promising role in Indian economy. We apply the artificial neural networks (ANNs) for modeling purpose. ANNs are flexible computing frameworks and its universal approximations applied to a wide range with desired accuracy. In the study, multilayer perceptron (MLP) models, which are basically feed-forward artificial neural network models, are used for forecasting the stock values of an Indian IT company. On the basis of various features of the network models, an optimal model is being proposed for the purpose of forecasting. Performance measures like \(\text {R}^{2}\), standard error of estimates, mean absolute error, mean absolute percentage error indicate that the model is adequate with respect to acceptable accuracy.

Keywords

Artificial neural network Financial forecasting Stock price Indian IT companies Multilayer perceptron. 

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Copyright information

© Springer India 2014

Authors and Affiliations

  1. 1.Population Studies UnitIndian Statistical InstituteKolkataIndia
  2. 2.SQC and OR DivisionIndian Statistical InstituteKolkataIndia

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