Impact of Crude Oil Price Volatility on Stocks of Oil Companies and other Industries

In this era of economic growth the oil price changes have a significant effect on the development of the global economy. Crude oil is an important raw material for many industries, for some it is a primary raw material and for some it is a secondary raw material, so the extraordinary increase in the price of the oil is bound to warn the economy with inflationary tendencies. Hence most of the industries are affected directly or indirectly by the increase in the oil price. This report has analyzed the performance of stock market and the performance of various industries towards the crude oil price changes. For this purpose, this study has considered mainly BSE (Bombay Stock Exchange). This study has established the relationship between stock market with their crude oil benchmarks, MCX Crude Oil (Multi Commodity Exchange of India). It is based on the daily price stock price movement and crude oil price movement from 2008-2009 to 2012-2013. For analysis the first degree asset pricing model CAPM ( Regression model) and different statistical tests have been applied using MS excel