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VOL. 7, ISSUE 2 (2025)
Stock market Interdependencies: A comprehensive analysis of correlations among india and global indices
Authors
Dr. Siddhartha Sankar Saha, Rapti Deb
Abstract
In an era of increasing global financial interdependence, understanding
the integration of Indian stock indices with international markets is essential
for stakeholders navigating the complexities of the financial landscape. This
study seeks to provide valuable insights into this dynamic stock market
relationship, focusing on the evolving interactions between India’s S&P BSE
SENSEX and twenty-one indices across Asia, America, and Europe over a 16-year
period, from June 3, 2003, to December 30, 2019. The analysis utilizes descriptive
statistics to examine the nature of return series calculated from daily index
closing data of the selected indices and applies correlation measures to assess
market integration. The normality test results led to the adoption of the
non-parametric Spearman Rank Correlation method. The findings reveal weak
correlations among the S&P BSE SENSEX and the selected twenty-one indices,
indicating limited financial integration and highlighting significant potential
for portfolio diversification. In contrast, the study identifies moderate
associations among the American and European indices, reflecting strong
regional market integration and suggesting limited diversification
opportunities within these markets.
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Pages:62-69
How to cite this article:
Dr. Siddhartha Sankar Saha, Rapti Deb "Stock market Interdependencies: A comprehensive analysis of correlations among india and global indices". International Journal of Finance and Commerce, Vol 7, Issue 2, 2025, Pages 62-69
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