THE INFLUENCE OF GLOBAL INDEXES ON THE INDIAN STOCK MARKET BASED ON CAUSALITY AND COINTEGRATION

The opening of markets in different emerging countries during the 80s and 90s culminated in the influx of savings or funds from different countries that are developed. This certainity makes the stock exchange a significant financial operation for brokers to benefit from it. A constant or progressive linkage occurs between the developed and developing economies. Due to a higher degree of transparency and developed economies, the flow of information from them in various time zones has a huge influence on our domestic economy. The present study investigates the inter dependence among global markets and finding a relationship between them using econometric models based on secondary data. This report combines knowledge from three capital markets: FTSE, S&P 500 Index and the NIFTY50 from the years of 2008-2018. The study employs multiple econometric models on weekly closing prices to analyze the relation between the global markets in long run and short run and also discuss the impacts and future of the financial market.