ANALYZING THE LINKAGE OF CAPITAL MARKET TO ECONOMIC TRENDS IN LONG-RUN AND SHORT-RUN TIME SERIES IN INDIAN PHARMACEUTICAL COMPANIES
DOI:
https://doi.org/10.29121/shodhkosh.v5.i1.2024.1588Keywords:
Share Return, Inflation, Industrial Production, Interest Rate, Granger Causality test, Johansen Co-integration testAbstract [English]
In the financial markets, where macroeconomic parameters demonstrate the performance of an economy, stock return variation draws attention to market uncertainty and shifting expectations on industry/company performance. This study looks into the stock return variation of 25 Indian pharmaceutical businesses and macroeconomic factors such as Inflation, Interest rate and IIP before and after the COVID-19 pandemic that erupted in November 2019 using the Granger Causality test and Johansen Co-integration test to study the short-run and long-run interlinkage. The study aids in gaining a better knowledge of the interdependence of stock volatility and macroeconomic conditions to make better investment decisions.
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Copyright (c) 2024 Avanthika. M, Anbumalar S.
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