Investigating the Dynamic Relationship between the Indian Stock Market and the Currency Market

Authors

  • Shivani Inder Punjabi University, Punjab

DOI:

https://doi.org/10.33516/maj.v50i6.79-84p

Abstract

The participation of FIIs and the much more active participation of the investors in Indian market the markets have got more integrated over the period and the currency markets are influencing more significantly the market returns rather than being it the other way around. With the improved globalisation, the currency markets have also grown up to a great extent and have interwined themselves with the stock markets. The relationship between currency markets and the stock markets has been dynamic and showcases a different dimension for the movement of stock markets. The study focuses on analysing the dynamic relationship between the currency market and the stock market by analysing the US$/Re. exchange rate returns and the S&P CNX Nifty returns. The study considers the time frame of Jan 2001-Sept 2014. It has been found that there is significant causal relationship between exchange rate and stock market.

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Published

2015-06-01

How to Cite

Inder, S. (2015). Investigating the Dynamic Relationship between the Indian Stock Market and the Currency Market. The Management Accountant Journal, 50(6), 79–84. https://doi.org/10.33516/maj.v50i6.79-84p

Issue

Volume 50, Issue 6, June 2015

Section

Capital Market
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