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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
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