Integration of Nifty 50 with Select Global Indices: Post Pandemic - An Empirical Evidence

Abstract

This article examines the integration of the Nifty 50 with major global indices after the COVID-19 pandemic. The main objective of this study is to understand the impact of global indices on the Indian market and the correlation between the global indices and Indian market post-pandemic. The securities exchange plays a crucial role in the country’s economy, and the secondary market is a platform for trading existing organisation securities. Global indices are benchmarks used to evaluate the strength or weakness of the overall market. To conduct this study, secondary data was collected from various sources such as NSE India, MoneyControl.com and concerned stock exchange websites. The study concludes that the correlations between Nifty 50 and global indices, such as Dow Jones, Nasdaq, Hang Seng Index and Nikkei 225, increased significantly during the pandemic. This finding indicates that the Indian market is more susceptible to global economic trends than before. Furthermore, integrating Nifty 50 with these indices can help investors diversify their portfolios, mitigate risks and enhance returns. Therefore, it is recommended that investors monitor the correlations and integration of the Indian market with global indices. The research methodology of this study is based on collecting and analysing secondary data from different sources. Previous studies have also explored the impact of the COVID-19 pandemic on the integration of the Nifty 50 with global indices and suggested that the integration of the Nifty 50 with these indices can be beneficial for investors. In conclusion, the study highlights the importance of monitoring the integration of the Indian market with global indices, especially after the COVID-19 pandemic. Investors can use this information to make informed decisions, diversify their portfolios, and mitigate risks.

Keywords: Global Indices, NIFTY, Integration, International Finance and COVID-19

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