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Muthukumaran, T.
- Causality Relationship between Exchange Rate and Stock Returns in India - An Analytical Study
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Authors
Affiliations
1 PG & Research Dept. of Corporate Secretaryship, Bharathidasan Govt. College for Women, Puducherry, IN
2 Department of Management Studies, Saradha Gangadharan College, Puducherry, IN
1 PG & Research Dept. of Corporate Secretaryship, Bharathidasan Govt. College for Women, Puducherry, IN
2 Department of Management Studies, Saradha Gangadharan College, Puducherry, IN
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HuSS: International Journal of Research in Humanities and Social Sciences, Vol 1, No 2 (2014), Pagination: 111-116Abstract
The present study tries to estimate causality relationship that exists between exchange rate and stock returns. The impact of exchange rate on the returns from stock in India is examined, by using periodical data from the beginning of 1997 to the close of 2014. Macro variables are considered for the study: Real Exchange Effective Rate (REER) and BSE SENSEX. The study reveals that there exists some relationship between these two elements found through Granger Causality Technique [8]. However, from the short run results one cannot confirm that the exchange rate does not influence return on shares and vice versa. This study asserts that the exchange rate neither affects stock returns nor stock return affects the exchange rate. Thus, the present study empirically proves that the former does not induce the latter and in turn stock returns have no influence over exchange rate.Keywords
Causality Relationship, FEDAI, Macroeconomic Variables, REER.References
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- An Analytical Study of Business Risk and Financial Risk of Selected Industries in India
Abstract Views :159 |
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Authors
Affiliations
1 Assistant Professor, Department of Management Studies, Saradha Gangadharan College, Puducherry., IN
2 Assistant Professor, Department of Commerce, Saradha Gangadharan College, Puducherry., IN
3 Assistant Professor, PG Department of Commerce, Saradha Gangadharan College, Puducherry., IN
1 Assistant Professor, Department of Management Studies, Saradha Gangadharan College, Puducherry., IN
2 Assistant Professor, Department of Commerce, Saradha Gangadharan College, Puducherry., IN
3 Assistant Professor, PG Department of Commerce, Saradha Gangadharan College, Puducherry., IN
Source
Abhigyan, Vol 40, No 3 (2022), Pagination: 47-54Abstract
In India, post economic liberalisation period starting from early 1990s opened up new vistas for rapid development of Indian stock markets accompanied by high volatility in stock exchanges. The volume of trade increased rapidly with more number of retail investors beginning to invest in equity shares of listed companies in specific industry sectors. This brought to the fore the importance of analysis of business and financial risks associated with such investment decisions. Every rational investor will do well to analyse the risk and return before investing in any stock or security. The investment process must be considered in terms of both risk and return. The present study deals with the estimation of business risk and financial risk of the selected companies in selected industries, based on empirical analysis. For the study, six industries such as Automobile, Cement, Paint, Paper, Pharmaceuticals and Personal Care(FMCG) have been selected from the Indian industries from April 1996 to March 2020. The findings of the study revealed the extent of the relationship between business and financial risk and return in specific sectors of industry in India.Keywords
Business Risk, Financial Risk, Return, Volatility, Regression..References
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