Impact of International Stock Market Indices on the Indian Stock Market Indices during the COVID 19 Pandemic

This paper helps to understand the possible relationship between selected International stock market indices and Indian stock market indices during the COVID 19 pandemic. To study the relationship between international stock market indices and Indian stock market indices, regression analysis is used. For Granger Causality test Japan, China, Hong Kong, India, Germany, France, UK, and US stock markets are selected. The selection of the stock market indices was made based on the opening time of the stock market according to Indian Standard Time. The study is conducted during the COVID 19 situation using daily data from March 2020 to May 2020 relating to the prices of the selected International stock market indices. The outcome of the study concludes that the Indian stock market indices, mainly NIFTY are having bidirectional causality with NYSE, NASDAQ, FTSE, DAX and CAC40. The study further concludes that both NIFTY 50 and SENSEX do not have any impact on the ASIAN indices: Nikkei, Hang Seng and SSE Composite.