International Research journal of Management Science and Technology

  ISSN 2250 - 1959 (online) ISSN 2348 - 9367 (Print) New DOI : 10.32804/IRJMST

Impact Factor* - 6.2311


**Need Help in Content editing, Data Analysis.

Research Gateway

Adv For Editing Content

   No of Download : 212    Submit Your Rating     Cite This   Download        Certificate

IMPACT OF MACROECONOMIC INDICATORS ON THE STOCK MARKETS OF INDIA AND CHINA : A STUDY IN CONTRASTS

    2 Author(s):  UMA.T, DR.N.KALYANARAMAN

Vol -  8, Issue- 6 ,         Page(s) : 215 - 225  (2017 ) DOI : https://doi.org/10.32804/IRJMST

Abstract

The purpose of this paper is to explore the relationship between four chosen macroeconomic variables and stock markets of China and India during the pre global financial crisis period from 2002 to 2007 and post global financial crisis period from 2008 to 2015.It also examines the reasons for the change in relationship between these macroeconomic indicators and stock markets between the pre and post financial crisis period. A comparative analysis of India and China is then made based on the relationship of the macroeconomic indicators of each country with its respective stock markets.

  1. Abdalla, I.S. and Murinde, V., 1997. Exchange rate and stock price interactions in emerging financial markets: evidence on India, Korea, Pakistan and the Philippines. Applied financial economics, 7(1), pp.25-35.
  2. Agrawal, G., Srivastav, A.K. and Srivastava, A., 2010. A study of exchange rates movement and stock market volatility. International Journal of Business and Management, 5(12), p.62.
  3. Bajpai, N., 2011. Global financial crisis, its impact on India and the policy response. Columbia Global Centers/South Asia, Columbia University.
  4. Basu, K. (2009). China and India: idiosyncratic paths to high growth. Economic and Political Weekly, 43-56.
  5. Bhattacharya, B. and Mukherjee, J., 2002. The nature of the causal relationship between stock market and macroeconomic aggregates in India: An empirical analysis. In 4th annual conference on money and finance, Mumbai (pp. 401-426).
  6. Charkravarty, S. (2005). Stock market and macroeconomic behavior in India. Institute of Economic Growth, Delhi, India.
  7. Cong, R.G., Wei, Y.M., Jiao, J.L. and Fan, Y., 2008. Relationships between oil price shocks and stock market: An empirical analysis from China. Energy Policy, 36(9), pp.3544-3553.
  8. Das, G., 2006. The India Model. Foreign Affairs, 85(4):pp.2-16.
  9. Deb, S.G. and Mukherjee, J., 2008. Does stock market development cause economic growth? A time series analysis for Indian economy. International Research Journal of Finance and Economics, 21(3), pp.142-149.
  10. Geetha, C., Mohidin, R., Chandran, V.V. and Chong, V., 2011. The relationship between inflation and stock market: Evidence from Malaysia, United States and China. International journal of economics and management sciences, 1(2), pp.1-16.
  11. Ghosh, A., Roy, S., Bandyopadhyay, G. and Choudhuri, K., 2010, October. Share Market Analysis Using Various Economical Determinants to Predict Decision of Investors. In AIP Conference Proceedings (Vol. 1298, No. 1, pp. 529-534). AIP. 
  12. Greenaway, D., Mahabir, A., & Milner, C. (2008). Has China displaced other Asian countries' exports? China Economic Review, 19(2), 152-169.
  13. Hosseini, S.M., Ahmad, Z. and Lai, Y.W., 2011. The role of macroeconomic variables on stock market index in China and India. International Journal of Economics and Finance, 3(6), p.233.
  14. Kannaiah, D. and Uma, T., 2016. Is India Really Competing with China on a Macro Economic Base. International Journal of Economics and Finance, 8(11), p.150.
  15. Kshetri, N., 2011. Emerging economies and the global financial crisis: Evidence from China and India. Thunderbird International Business Review, 53(2), pp.247-262.
  16. Liu, X. and Sinclair, P., 2008. Does the linkage between stock market performance and economic growth vary across Greater China?. Applied Economics Letters, 15(7), pp.505-508.
  17. Mallik, G., & Chowdhury, A. (2001). Inflation and economic growth: Evidence from four south Asian countries. Asia-Pacific Development Journal, 8(1), 123-135.
  18. Marshall, D.A., 1992. Inflation and asset returns in a monetary economy. The Journal of Finance, 47(4), pp.1315-1342.
  19. Ogawa, E. and Sakane, M., 2006. The Chinese Yuan after the Chinese Exchange Rate System Re-form. China and World Economy, 14, 39–57.
  20. Patel, S., 2012. The effect of macroeconomic determinants on the performance of the Indian stock market. NMIMS Management Review, 22(1), pp.117-127. 
  21. Ray, S., 2012. Testing granger causal relationship between macroeconomic variables and stock price behaviour: evidence from India. Advances in Applied Economics and Finance, 3(1), pp.470-481.
  22. Srivastava, N., 2016. Growth of Foreign Institutional Investors in India. International Journal of Multidisciplianry Research and Review, 1(4), p.197.
  23. Summers, L., 1981. Inflation and the Valuation of Corporate Equities (No. 0824). National Bureau of Economic Research, Inc.
  24. Sweeney, P. and Jianxin, L. (2014). China doubles yuan trading band, seen as sign of confidence. [online] U.S. Available at: http://www.reuters.com/article/us-china-yuanband-idUSBREA2E07V20140315 [Accessed 30 Aug. 2017].
  25. www.pwc.com. (2017). The world in 2050:How will the Global economic order change. [online] Available at: https://www.pwc.com/gx/en/world-2050/assets/pwc-world-in-2050-slide-pack-feb-2017.pdf [Accessed 30 Aug. 2017].

*Contents are provided by Authors of articles. Please contact us if you having any query.






Bank Details