Assistant Professor, GRG School of Management Studies, PSGR Krishnammal College for Women, Coimbatore, India, pbsaranya@grgsms.ac.in
Online published on 15 June, 2019.
Researches at different phases has been conducted to understand the movement of Indian stock indices and the factors which affect them the most. The past literatures have concluded that several micro and macro-economic variables have demonstrated both positive and negative relationship on stock returns. The current study aims to understand the association between the Indian stock market and fluctuating crude oil prices. Several literature have concluded that a country's economic activity influence their demand for crude oil and which in turn is responsible for the volatility in the prices. The objective of the study is to understand the long run and short run association between changing crude prices and the stock market returns. Test for Stationarity of data has been performed. Johansen Cointegration test for long run and Granger Causality test to understand the short run has been used in the study.
