Impact of Crude Oil Prices on the Bombay Stock Exchange
Keywords:
Consumer price index, Bombay stock exchange, oil prices, co integrationAbstract
The main objective of this paper is that oil is known as the important factor, which effects on all the economy of the country. For this purpose we have taken the data and apply the multiregression method. For the checking that data is stationary or not, we have applied the ADF test and Johansen co integration Test which have shown that there is positive relationship between oil prices, inflation and stock exchange of India. Bombay stock exchange is known as the faster stock exchange of the world. It was founded in 1876.According to market capitalization; it comes on the 11th no. Large capitalization is the reason the investors want to invest here. The value of market capitalization is seen 1.9 $ trillion. In 2001, it was considered as the derivatives market. It is famous due to its screen based trading system. AT any time, investors can do trade through this system.
References
Aden (2011). History of the Karachi Stock Exchange (KSE), available at: www.advfn.com/StockExchanges/history/KSE/KarachiStockExchange.html (accessed 08 January 2011)
Miller, M. H., & Upton, C. W. (1985b). The pricing of oil and gas: some further results. Journal of Finance 40, 1009-1018
Huang, B.N., M.J. Huang, and H.P. Peng (2005). The Asymmetry of the Impact of Oil Price
Shocks on Economic Activities: An Application of the Multivariate Threshold Model, Energy Economics, 27, 455-476
Sharma, G.D., Mahendru, M. (2010). Impact of Macro-Economic Variables on Stock Prices in India, Global Journal of Management and Business Research, Vol. 10 Issue 7, pp.19-26
Wikipedia (2001). Karachi Stock Exchange, available at: http://en.wikipedia.org/wiki/Karachi_Stock_Exchange
Wikipedia (2001). KSE-100 Index, available at: http://en.wikipedia.org/wiki/KSE100_Index
Ratanapakorn, O. and Sharma, S.C. (2007). Dynamic Analysis between the US Stock Returns and the Macroeconomic Variables, Applied Financial Economics, Vol.17 No. 4-6, pp.369-377
Karachi Stock Exchange (2011). Karachi Stock Exchange website, available at: http://www.kse.com.pk/ (accessed 29 September 2011)
Graham, S. (2001). The Price of Gold and Stock Price Indices for the United States, Adrienne Roberts FT Personal Finance, pp.14
De Gregorio, J., O. Landerretche, and C. Neilson (2007). Another Pass-Through Bites The Dust? Oil Prices and Inflation, Economia, 7(2), 155-196.
Bernanke, B.S., M. Gertler, and M. Watson (1997). Systematic Monetary Policy and the Effects of Oil Price Shocks, Brookings Papers on Economic Activity, (1), 91-157.
Perry Sadorsky (1999). Oil price shocks and stock market activity, Energy Economics, 21(5), 449-469
Moore, G.H. (1990). Gold Prices and a Leading Index of Inflation, Challenge, Vol. 33 No.4, pp.52-56
