Relationship between Stock Market Index and Foreign Exchange Rate after Demonetisation in India
Tiwari, R., Khem Chand, Anjum, B., Phuyal, M. (2017). Relationship between Stock Market Index and Foreign Exchange Rate after Demonetisation in India, International Research Journal of Management and Commerce, 4(11), 316-326.
Posted: 10 May 2021
Date Written: November 30, 2017
Abstract
The paper analyses the impact of demonetisation on stock market and foreign exchange rate. The secondary data is used for the study. The BSE Sensex is used to assess the impact of demonetization. US dollar and Indian Rupee foreign exchange rate is considered. Sensex and sectoral indices data was obtained from BSE website. Exchange rate data was obtained from Reserve Bank of India website. The period from November 2016 to November 2017 was selected for the study. Data was analyzed using correlation and regression. A negative correlation was found between foreign exchange rate and Sensex after demonetization. It was found that exchange rate has a significant impact on Sensex.
Keywords: Demonetisation, SENSEX, Foreign Exchange Rate, Secondary Data, Correlation
JEL Classification: F31, O16
Suggested Citation: Suggested Citation