Journal of Commerce and Accounting Research

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Impact of Euro-Asian Markets on Indian Capital Market


Affiliations
1 Associate Professor, Finance & Accounting, Indian Institute of Plantation Management Bengaluru, Karnataka, India
     

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Indian capital market is one of the outperforming financial markets in the global index have been attracting attention of investors word wide. The market has grown over 6% during the year 2018-19 with a market capitalization of INR 151 lakh crores facilitated in raising funds through debt and equity by 5.3% amounting to 9 lakh crores. This also contributed in the growth of returns from Indian markets and attraction of European and Asian investors. Liberalization of economic policies of trade and free flow of capital resulted in integration of global economies. Euro-Asian markets are globally recognized for the economic development of the region. This paper finds impact of Euro-Asian markets on Indian capital market using multiple regression analysis. The study finds global indices of Shanghai Composite do not have an impact on Indian stock market. However, the markets of Hangseng (HSI), EuroNext 100 and Taiwan (TSE Taiwan 50) have a positive impact on Indian capital market (Sensex). Any fluctuations of increase or decrease in these markets have simultaneous effect on Indian indices.

Keywords

Integration, Euro-Asian Markets, Impact, Capital Market.
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  • Impact of Euro-Asian Markets on Indian Capital Market

Abstract Views: 234  |  PDF Views: 1

Authors

A. N. Vijayakumar
Associate Professor, Finance & Accounting, Indian Institute of Plantation Management Bengaluru, Karnataka, India

Abstract


Indian capital market is one of the outperforming financial markets in the global index have been attracting attention of investors word wide. The market has grown over 6% during the year 2018-19 with a market capitalization of INR 151 lakh crores facilitated in raising funds through debt and equity by 5.3% amounting to 9 lakh crores. This also contributed in the growth of returns from Indian markets and attraction of European and Asian investors. Liberalization of economic policies of trade and free flow of capital resulted in integration of global economies. Euro-Asian markets are globally recognized for the economic development of the region. This paper finds impact of Euro-Asian markets on Indian capital market using multiple regression analysis. The study finds global indices of Shanghai Composite do not have an impact on Indian stock market. However, the markets of Hangseng (HSI), EuroNext 100 and Taiwan (TSE Taiwan 50) have a positive impact on Indian capital market (Sensex). Any fluctuations of increase or decrease in these markets have simultaneous effect on Indian indices.

Keywords


Integration, Euro-Asian Markets, Impact, Capital Market.

References