Linkage of Indian Equity Market with Developed Economies Equity Markets

Abstract

In the present situation the performance of stock markets is taken as a tool to evaluate the economic condition of a country. Indian financial markets are highly volatile in nature, due to highly volume of trade is done by foreign institutional investors and this coupled with dollar – rupee conversation rates. Due to these reasons, the present study is taken up to analyse the interdependency of NIFTY 50 Future (India), NIKKIE 225 (Japan), NASDAQ 100 USA), Dowjones 30 (USA), Shanghai (China) and Bovespa (Brazil). The ten years performance of the specified index is taken for analysis purpose i.e. from 2012-2022. The test of granger causality and correlation is used after the evaluation of non- normality and stationery data. The study reveals that high degree high degree of correlation between the Dowjones 30, NASDAQ and NIKKIE with that of NIFTY 50 and co-movement among the selected indices is observed through granger causality.

Keywords: Stock market indices, investors, performance

JEL Classification: M, F