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Title:
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A Study of Indian Stock Market with Reference to Crude Oil and Gold Price
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Author:
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Rajiv Kaushik
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Keywords:
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Money washing, HAWALA, The deterrence of money laundering Act, 2002.
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Abstract:
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The findings for the study on the relationship between Crude oil price and its impact on Indian stock market indices including Nifty 50 and midcap 100 indicates that the Crude oil significantly influences Nifty 50 and Nifty Midcap 100 index. The correlation between the Crude oil returns series and Nifty 50 returns and Nifty Midcap 100 returns was also estimated in the study. The results found that a negative correlation exists between the Crude oil with both the indicators of the Indian stock market. The increase in Crude oil prices provides a negative impact on the Indian economy. The increase in Crude oil increases inflation in the country. The increase in the cost of living causes many adverse effects on the economy. Thus, a negative relationship between the Crude oil and the stock market is expected which is also indicated by the results. The Causality relationship between the Crude oil and the Indian stock market indices was also studied with the help of Grangers causality test and the results found that the null hypothesis cannot be rejected and no lead lad relationship is found between Crude oil returns series and Nifty 50 returns and Nifty Midcap 100 returns. Thus, the results from the Grangers causality test showed that there exists no significant lead-lag relationship between the Crude oil returns series and Nifty 50 returns and Nifty Midcap 100 returns.
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