ISSN NO: 0974-4274(PRINT), ISSN NO: 2582-1148(ONLINE)

094390-15757 journal@srustiacademy.ac.in

Srusti Management Review (SMR)

Enlisted in UGC CARE Group - 1 | Journal of Management & IT

  • Enlisted in UGC CARE Group - 1

  • Listed in Ulrich's Periodicals Directory

  • Indexed in J-Gate

  • Licensor for EBSCO

  • Listed in Proquest

  • Included in Google Scholar

  • Accessed in DOAJ

A Study of Relationship between Exchange Rate Volatility and Banking Indices (BANEX) - An Indian Perspective

Year 2015
Volume/Issue/Review Month Vol. - VIII | Issue II | July - December
Title A Study of Relationship between Exchange Rate Volatility and Banking Indices (BANEX) - An Indian Perspective
Authors Dr. Amit Kumar Sinha , Dr. Suresh Kumar Sahoo , Deepak Pattanaik
Broad area A Study of Relationship between Exchange Rate Volatility and Banking Indices (BANEX) - An Indian Perspective
Abstract
There has been an extensive debate on measuring the sensitivity of returns of stocks. Particularly some Internal
and External conditions are involved in measuring the sensitivity of returns of stocks like; industrial Production,
money Supply ,Foreign exchange Rate, Interest rate, gold prices, GDP and oil prices in the world economy are
involved in external conditions whereas dividend policy, earning per share etc are the contributors of internal factors.
This paper examines the impact of Macro (External) factor i.e. Exchange rate on BSE Bankex. Macroeconomic
indicators are already exhibiting signs of deterioration as Rupee is depreciating against dollar. Especially, an attempt
has been made to explore the relation between stock market performance and exchange rate. The results are mixed
but interesting whereas, there is significant correlation between stock market and exchange rate.
Description In the era of globalization, stock market plays a crucial role in countries economic growth and development. It has been considered a healthy and flourishing stock market is essential for national economic growth by channelizing funds towards different se
File
Referenceses
1. Abdalla, I. and Murinde, V. (1997) “Exchange Rates
and Stock Price Interactions in Emerging Financial
Markets: Evidence on India, Korea, Pakistan and the
Philippines”, Applied Financial Economics, 7:25-35.
2. Abhay Pethe and Ajit Karnik (2000), “Do Indian Stock
market Matter? Stock-Market Indices and Macro-
Economic Variables”, Economic and Political
Weekly, Vol. 30 (5),
3. Adjasi, Charles and Harvey, Simon K. and
Agyapong, Daniel Akwesi (Decembe 2008), “Effect
of Exchange Rate Volatility on the Ghana Stock
Exchange” African Journal of Accounting,
Economics, Finance and Banking Research, Vol.
3, No. 3,
18 Srusti Management Review, Vol -VIII, Issue - II, Jul.- Dec. 2015
4. Aggarwal, R. (1981). “Exchange Rates and Stock
Prices: A Study of the US Capital Markets under
Floating Exchange Rates”, Akron Business and
Economic Review, vol. 12, pp. 7–12.
5. Ahmed, M.A., Rehman, R.U., Raoof, A. (2010). “Do
interest rate, Exchange Rates effect Stock Returns?
A Pakistani Perspective”, Interantional Research
Journal of Finance and Economics (50), pp. 146-150
6. Ajayi, R. A., and Mougoue, M., (1996), “On the
dynamic relation between stock prices
andExchange rates”, Journal of Financial Research,
Vol. 19, pp. 193–207.
7. Ajayi, R.A., Friedman, J. and Mehdian, S.M. (1998).
“On the Relationship between Stock Returns and
Exchange Rates: Tests of Granger Causality”,
Global Finance Journal, vol. 9(2), pp. 241–51
8. Aydemir, O. ve E. Demirhan, “The Relationship
between Stock Prices and Exchange Rates:
Evidence from Turkey,” International Research
Journal of Finance and Economics, 23, 207-215
(2009).
9. Bahmani-Oskooe, M. & Sohrabian, A. (1992). Stock
prices and the effective exchange rate of the dollar,
Applied Economics, Vol. 24 (4), pp. 459-465.
10. Bahmani-Oskooee, M. and Sohrabian, A. (1992).
“Stock Prices and the Effective Exchange Rate of
the Dollar”, Applied Economics, vol. 24, pp. 459–464.