The impact of diwali on stock market and commodity market

This paper examines whether Diwali has an impact on the stock market as well as the commodity market. For this study, daily returns of Nifty-50 Index and MCX (MCXCOMCEX) Index of 10 years have been considered that is from 2006–2016. In this Paper, p-GARCH model has been used to check if Nifty-50 and MCX has a predictable pattern, because it provided the best results, when compare to the remaining models. Three objectives are formed and tested using the tools of GARCH and Granger Causality. In the context of the models developed in the study, the findings indicate that the Diwali does not impact the stock and commodity market, but both the commodity and stock market have a relationship and the unequal pattern repeats itself in NIFTY-50 and MCX. So, it is concluded that that the stock market and commodity market is a good model to be predicted for the returns and volatility, and thus, this model can be used by investor to predict the future price and to make profits out of their investment.