Oil Price Shock and Its Effect on Stock Markets of India

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Article

Date

2019-03

Journal Title

Anweshan - journal of Department of Commerce

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Roy, Dipen

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Volume Title

Publisher

University of North Bengal

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Bagchi, B., & Mishra, A. (2019). Oil Price Shock and Its Effect on Stock Markets of India. Anweshan - Journal of Department of Commerce, 6(1), 41–58. https://ir.nbu.ac.in/handle/123456789/2968

Authors

Bagchi, Bhaskar
Mishra, Ansu

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Abstract

The present study makes an attempt to investigate the effect of sharp continuous surging crude oil price on stock market indices of India, and also the long-term and short term relationships between crude oil prices and stock indices. The ‘period of the study’ spans from July 2009 to December 2016. We have found surge in oil price has positive correlation with equity indices and negative correlation with the exchange rates. The result is suited with the existing economic theory. Multivariate cointegration techniques along with vector error correction mechanism have been applied in the study.

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Keywords

crude oil prices, emerging economy, exchange rates, oil price shock, stock indices

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Volume Number

6

Issue Number

1

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2321-0370

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41 - 58

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