Information Flows between Sectors in Indian Stock Markets

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Article

Date

2015-03

Journal Title

Anweshan - journal of Department of Commerce

Journal Editor

Dhar, Samirendra Nath

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Publisher

University of North Bengal

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Karmakar, M. (2015). Information Flows between Sectors in Indian Stock Markets. Anweshan - Journal of Department of Commerce, 3(1), 16–45. https://ir.nbu.ac.in/handle/123456789/2943

Authors

Karmakar, Madhusudan

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Abstract

The paper investigates return and volatility spillover mechanism between ten sectors of the Bombay Stock Exchange in India. The study uses cointegration analysis to examine the co-movements between different sectors prices and VAR analysis to investigate the transmission of shocks between different sector returns. A bivariate GARCH model is also used to estimate the volatility spillover mechanism. The findings of the study indicate that there are strong information flows between sectors. The findings have significant implications for investors as well as policymakers.

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Keywords

Information flows, Volatility spillover, integration, Granger causality, Bivariate GARCH

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Volume Number

3

Issue Number

1

ISSN No

2321-0370

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Pages

Pages

16 - 45

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