News of Inflation and Effect on Stock Prices in India

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Article

Date

2014-03

Journal Title

Anweshan - journal of Department of Commerce

Journal Editor

Dhar, Samirendra Nath

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University of North Bengal

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Sahu, T. N., Bandopadhyay, K., & Mondal, D. (2014). News of Inflation and Effect on Stock Prices in India. Anweshan - Journal of Department of Commerce, 2(1), 1–26. https://ir.nbu.ac.in/handle/123456789/2934

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Abstract

The article investigates into the impact of the inflation rate on stock market in India during the period 1993 to 2013. The study explores into the long-run co-movement between the rate of inflation and stock prices in India and attempts to reveal whether inflation rate causes stock market movement in India. The study also reveals that both the Indian stock markets are strongly exogenous in the sense that shocks to inflation rate explain only a small portion of the forecast variance error of the market indices and notices that a positive shock on inflation rate has a negative and persistent effect on Indian stock markets.

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Volume Number

2

Issue Number

1

ISSN No

2321-0370

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Pages

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1 - 26

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