IDEAS home Printed from https://ideas.repec.org/a/etr/series/v4y2013i8p181-186.html
   My bibliography  Save this article

Is it true that Indian gold price influenced by Indian stock market reaction?

Author

Listed:
  • Somnath Mukhuti

    (CMJ University Meghalaya, India)

  • Amalendu Bhunia

    (Department of Commerce, University of Kalyani, West Bengal, India)

Abstract

The present study investigates the reaction of Indian stock market index (Sensex and Nifty) on Indian gold price or the relationship between Indian gold price and Indian stock market index (Sensex and Nifty) for the period of study between 2nd January 1991 and 10th August 2012 using daily time series data with the application of bivariate and multivariate cointegration test. In times of national crisis, bank failures, rupee depreciation, and in case of negative real interest rate, people consider gold as a solid asset and safe haven and like to invest in such yellow precious metal because there is a little chance of getting better returns in the stock investment due to a fragile economic and financial position. Bivariate cointegration test results specify that there is no cointegration relationship between gold price and the two stock market indices. But multivariate cointegration test results show that there is a presence of steady cointegration relationship between the gold price and two stock market indices in India. So, gold price in India was increased during the study period because of stock market reaction in India along with other macro-economic factors.

Suggested Citation

  • Somnath Mukhuti & Amalendu Bhunia, 2013. "Is it true that Indian gold price influenced by Indian stock market reaction?," E3 Journal of Business Management and Economics., E3 Journals, vol. 4(8), pages 181-186.
    • Handle: RePEc:etr:series:v:4:y:2013:i:8:p:181-186
    as

    Download full text from publisher

    File URL: http://e3journals.org/cms/articles/1376064880_Somnath%20and%20Amalendu.pdf
    File Function: Full text
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Subrata Roy, 2020. "Gold & Stock Relation: Investors’ Reaction During Covid-19 Outbreak," Review of Economic and Business Studies, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, issue 26, pages 29-52, December.
    2. ROY Subrata, 2020. "Gold & Stock Relation: Investors Reaction During Covid-19 Outbreak," Revista Economica, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 72(3), pages 103-126, November.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:etr:series:v:4:y:2013:i:8:p:181-186. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Andrew Godwin (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.