Impact of the movement of global stock market indices on Indian indices

Abstract

The focus of the study is to understand the behaviour of Indian Stock markets and its correlation with the various international markets. The period of study is 10 years using data available in the public domain. The attempt is to identify correlations between the various global indices and its significance on the Indian indices. The attempt is also to create a model to predict changes in the Indian indices based on the changes observed in the international markets. The comparable indices are taken in this study particularly focussing on NASDAQ-100, S&P 500, SSE Composite Index, Hang Seng Index, FTSE 100, Nikkei while the Indian index chosen is NSE's NIFTY 50 along with NIFTY IT and BSE's Sensex. ANOVA techniques will be used to develop the model and find level of significance of each of these indices on the Indian markets.