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Measuring Financial Integration: The Case of The Indian Stock Market and Global Trends

Year: 2025

Type: article

Abstract: Globalization has significantly increased the interdependence of financial markets, making the study of stock market integration highly ‎relevant. This research investigates the integration of the Indian stock market (CNX Nifty) with major global indices, including the New ‎York Stock Exchange (NYSE), NASDAQ, and the Shanghai Stock Exchange (SSE), over the period from January 2022 to December ‎‎2024. Employing statistical techniques such as cointegration tests and Granger causality, the study analyzes co-movements, interdepend‎encies, and causal relationships among these markets. The findings reveal long-term cointegration between the CNX Nifty and the global indices, indicating that these markets share a stable long-term relationship despite short-term fluctuations. Granger causality analysis ‎shows that the CNX Nifty has predictive influence over the NYSE but not over NASDAQ, while a bidirectional relationship exists with ‎the SSE Composite. These results provide valuable insights for investors and policymakers, highlighting the increasing significance of ‎India’s market in the global financial system and informing strategies for risk management and investment opportunities‎.

Source: International Journal of Accounting and Economics Studies

DOI: 10.14419/97as0d66

Authors: M. Devaki, Sharan Kumar Shetty, Virgil Popescu, Ramona Birau, Stefan Margaritescu, P. Vidhya, D. Renukadevi, P. Manochithra, N. Devaram

Institutions: Sri Ramakrishna College of Arts and Science, University of Craiova, Constantin Brâncuși University of Targu Jiu

Topic: Financial Risk and Volatility Modeling

Subfield: Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

Open Access status: bronze

OpenAlex ID: W4417115704

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