Causal Nexus between the Anamolies in the Crude Oil Price and Stock Market

Authors

  • Iqbal Thonse Hawaldar Kingdom University
  • T. M. Rajesha
  • Lokesha Lokesha
  • Adel M. Sarea

Abstract

The paper attempts to examine the causal association between the crude oil price anomalies and stock market returns in the Indian stock market. The study covers nine years starting from 2009 to 2018, and the study includes ten companies in the oil drilling and exploration sectors listed in the BSE SENSEX and CNX NIFTY indexes. We employed correlation tests in determining the relationships amongst the stock market return, crude oil price and market benchmarking indexes. Our study concludes that the oil price shocks is not directly affecting the stock prices of oil-related firms; instead, its indirectly impacting the economy through different channels such as fiscal, trade and price channels. We also suggest the need for future researches in determining the effect of oil price variations on the macroeconomic factors by precisely diagnosing the role of channels mentioned above.Keywords: Oil prices, Stock market, Crude oil price, Emerging Markets, Indian stock marketJEL Classifications: G12, G15, Q43DOI: https://doi.org/10.32479/ijeep.9036

Downloads

Download data is not yet available.

Downloads

Published

2020-03-17

How to Cite

Hawaldar, I. T., Rajesha, T. M., Lokesha, L., & Sarea, A. M. (2020). Causal Nexus between the Anamolies in the Crude Oil Price and Stock Market. International Journal of Energy Economics and Policy, 10(3), 233–238. Retrieved from https://econjournals.com/index.php/ijeep/article/view/9036

Issue

Vol. 10 No. 3 (2020)

Section

Articles

License

Submission of an article implies that the work described has not been published previously , that it is not under consideration for publication elsewhere, that its publication is approved by all authors and tacitly or explicitly by the responsible authorities where the work was carried out, and that, if accepted, will not be published elsewhere in the same form, without the written consent of the Publisher. The Editors reserve the right to edit or otherwise alter all contributions, but authors will receive proofs for approval before publication.