The Interdependence Between Stock Markets-An Econometric Study of BRICS Nations

The relationship between the stock markets of developed countries and developing countries has been examined extensively in literature. However, stock markets of BRICS (Brazil, Russia, India, China and South Africa) countries have received little attention separately despite the rapid growth and liberalization among these countries. So, the aim of the study is investigating above relationships both in short and long-run with specialreferenceto India. To investigate the relationships, the researcher has examined thestock indices of BRICS countries and employed the daily closing price data (all converted in to Indian Rupees. This study has used Jarque-Bera test, and ADF for judging the normality and stationarity of the data series. Based on the above results Stock price linkages has been examined through cointegration analysis and the Engel Granger causality test has also been used to study the long term equilibrium relationships.