Associate Professor, School of Management Studies, Jawaharlal Nehru Technological University, Hyderabad.
The stock prices are sensitive to the flow of market information in the country and also globally. There are several reasons why the returns of two different equity markets might be related. In recent years, globalization of capital flows has led to the growing relevance of emerging capital markets and India is one of the countries with an expanding stock market that is increasingly attracting funds from the FII’S. In particular, deregulation and market liberalization measures, rapid developments in communication technology and computerized trading systems, and increasing activities of multinational corporations have accelerated the growth of Indian capital market. The impact of recession being felt on the US stock markets which in turn has impact on the other stock markets during the period 2006 to 2009. The impact of recession on the NASDAQ US stock market index and its impact on the NIFTY an Indian stock index is studied.
Stock markets, recession, Indices, Risk, return
