Interlinkages Between Indian and Global Stock Market Returns : Evidence from G5 Countries

Authors

  •   Sushma Gawade PG Student, Narayan Zantye College of Commerce, Bicholim, Goa - 403 529
  •   Narayan Parab Research Scholar, Department of Commerce, Goa University, Goa - 403 206
  •   Y. V. Reddy Registrar, Goa University and Professor (Corresponding Author), Department of Commerce (on lien), Goa University, Goa - 403 206

DOI:

https://doi.org/10.17010/ijf/2019/v13i6/144850

Keywords:

G5 Countries

, Stock Returns, Bai-Perron Test

G1

, F32, F36

August 6

, 2018, Paper sent back for Revision, May 9, 2019, Paper Acceptance Date, May 18, 2019

Abstract

Globalization has brought the world nations together with respect to trade and strategic alliances. The present study focused on investigating interlinkages between Indian and global stock markets. For this purpose, a group of five budding countries of the 21st century was selected, that is, Brazil, China, India, Mexico, and South Africa, also known as G5. Considering a data from 2001 to 2017, the study attempted to examine the relationship, causality, and impact between Indian and global stock market returns. The results indicated a strong positive relationship between Indian and global stock market returns, and such relation was found to be highest with the Shanghai Composite Index returns (China). The study also evidenced bidirectional causality between Indian and global stock market returns. Also, a significant positive impact of global stock market returns was noticed. The results will be helpful for investors belonging to G5 countries to frame short term and long-term investment strategies.

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Published

2019-06-04

How to Cite

Gawade, S., Parab, N., & Reddy, Y. V. (2019). Interlinkages Between Indian and Global Stock Market Returns : Evidence from G5 Countries. Indian Journal of Finance, 13(6), 54–64. https://doi.org/10.17010/ijf/2019/v13i6/144850

Issue

Volume 13, Issue 6, June 2019

Section

Articles
Crossref
Scopus
Google Scholar
Europe PMC

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