Linkages Between Macroeconomic Variables and the BSE Stock Indices :An Application of the Vector Error Correction Model

The research analyses relationships among macroeconomic variables and BSE Stock Indices from April, 1999 to March, 2007. By employing the Johansen's Vector Error Correction Model, results indicate that the impact of macroeconomic variables on the fundamental indices and sectoral indices vary, n...

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Main Author: Shah, Preksha
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2007
Subjects:
Online Access:https://eprints.nottingham.ac.uk/21385/
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author Shah, Preksha
author_facet Shah, Preksha
author_sort Shah, Preksha
building Nottingham Research Data Repository
collection Online Access
description The research analyses relationships among macroeconomic variables and BSE Stock Indices from April, 1999 to March, 2007. By employing the Johansen's Vector Error Correction Model, results indicate that the impact of macroeconomic variables on the fundamental indices and sectoral indices vary, necessitating the requirement for separate sectoral studies. While industrial production is found to drive the BSE capital goods index in the long run, it is negatively related to the BSE consumer durables index. The exchange rates seem to affect the BSE capital goods index in the long run but not BSE consumer durables index. The nature of the relationship between the call rates and the two indices is also opposite in the long run. In the short run also, the responses of both the indices to the call as well as the exchange rate are in opposite directions.
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institution University of Nottingham Malaysia Campus
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language English
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spelling nottingham-213852018-02-15T06:05:11Z https://eprints.nottingham.ac.uk/21385/ Linkages Between Macroeconomic Variables and the BSE Stock Indices :An Application of the Vector Error Correction Model Shah, Preksha The research analyses relationships among macroeconomic variables and BSE Stock Indices from April, 1999 to March, 2007. By employing the Johansen's Vector Error Correction Model, results indicate that the impact of macroeconomic variables on the fundamental indices and sectoral indices vary, necessitating the requirement for separate sectoral studies. While industrial production is found to drive the BSE capital goods index in the long run, it is negatively related to the BSE consumer durables index. The exchange rates seem to affect the BSE capital goods index in the long run but not BSE consumer durables index. The nature of the relationship between the call rates and the two indices is also opposite in the long run. In the short run also, the responses of both the indices to the call as well as the exchange rate are in opposite directions. 2007 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/21385/1/diss_pdf.pdf Shah, Preksha (2007) Linkages Between Macroeconomic Variables and the BSE Stock Indices :An Application of the Vector Error Correction Model. [Dissertation (University of Nottingham only)] (Unpublished) BSE Sensex capital doods index consumer durables index cointegration analysis impulse response functions
spellingShingle BSE Sensex
capital doods index
consumer durables index
cointegration analysis
impulse response functions
Shah, Preksha
Linkages Between Macroeconomic Variables and the BSE Stock Indices :An Application of the Vector Error Correction Model
title Linkages Between Macroeconomic Variables and the BSE Stock Indices :An Application of the Vector Error Correction Model
title_full Linkages Between Macroeconomic Variables and the BSE Stock Indices :An Application of the Vector Error Correction Model
title_fullStr Linkages Between Macroeconomic Variables and the BSE Stock Indices :An Application of the Vector Error Correction Model
title_full_unstemmed Linkages Between Macroeconomic Variables and the BSE Stock Indices :An Application of the Vector Error Correction Model
title_short Linkages Between Macroeconomic Variables and the BSE Stock Indices :An Application of the Vector Error Correction Model
title_sort linkages between macroeconomic variables and the bse stock indices :an application of the vector error correction model
topic BSE Sensex
capital doods index
consumer durables index
cointegration analysis
impulse response functions
url https://eprints.nottingham.ac.uk/21385/