The change in the stock price market is an everyday occurrence. The buyers & sellers cause the changes & thus decide the price of each stock. Various factors influence the changes of the stock market such as GDP of the country, recession, growth in industrial production, irrational behaviour of the investors, changes in the political scenario, influences from the other stock exchanges of the world, economic reforms after liberalisation etc. out of which changes in the political environment are given more preference in this research paper. The reason being for this selection are the political parties who reign in the country decide the legal restriction as well as pass laws to ensure the all round development of the country. The researcher has tied to find out whether the political events in the political scenario caused any significant changes in the stock markets. In this paper, the researchers have dealt with two companies of each sector i.e. banking & Heavy industry. The companies selected from the heavy industry sector are Bharat Heavy Electricals Limited( BHEL) & Larsen & Tubro where as for the banking sector the banks selected were State Bank of India (SBI) & Punjab National Bank (PNB). This paper has also dealt with the calculation of systematic & unsystematic risk of each stock for the month of December.
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