A stock split is a corporate action that increases the number of a company’s outstanding shares by dividing existing shares into multiple new shares. However, the stock’s market capitalization remains unchanged. Companies typically implement stock splits when their share prices become too high, making it difficult for investors to buy shares. This study examines the market reaction to stock split announcements of S&P CNX 500 stocks listed on the National Stock Exchange (NSE) using the Event Study Methodology. A sample of 74 stock split announcements from 2019 to 2024 is analyzed. The significance of Average Abnormal Returns (AARs) and Cumulative Average Abnormal Returns (CAARs) is tested using a One-Sample ‘t’ test. The findings indicate that stock split announcements generate significant positive returns.