A STUDY ON INTEGRATION OF STOCK MARKETS: EMPIRICAL EVIDENCE FROM NATIONAL STOCK EXCHANGE AND MAJOR GLOBAL STOCK MARKETS

Abstract
This study empirically examines the co integration of the Indian stock market with special reference to National Stock Exchange, with the major stock exchanges in the world. The study of the existence of interlink ages among international capital markets has considerable implications on determining the extent of portfolio diversification as well as macroeconomic policies of individual countries. The changing conditions in the international stock market have led global investors to think of other leading market which offers immense returns. Asian Markets have emerged as desired investors centre for the global players. However, their movement is also subject to the volatility prevailing in the international markets. The results of Johansen cointegration test confirmed the existence of long term relationship between NSE Nifty and other indices of major stock exchanges in the world.

Authors
Malabika Deo1, P Arun Prakash2
Pondicherry University, India1, Bannari Amman Institute of Technology, India2

Keywords
Stock Market Integration, Long Run Relationship, Global Stock Markets, Johansen Cointegration Test and Granger Causality Test
Published By :
ICTACT
Published In :
ICTACT Journal on Management Studies
( Volume: 3 , Issue: 2 )
Date of Publication :
May 2017

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