Measuring Financial Integration: The Case of The Indian ‎Stock Market and Global Trends

Authors

  • M. Devaki Department of Corporate Secretaryship, Sri Ramakrishna College of Arts & Science, Coimbatore, Tamil Nadu, India
  • Sharan Kumar Shetty Department of MBA, AJ Institute of Engineering & Technology – Mangalore, Karnataka, India
  • Virgil Popescu Faculty of Economics and Business Administration, University of Craiova, Craiova, Romania
  • Ramona Birau Doctoral School of Economic Sciences “Eugeniu Carada”, University of Craiova, Craiova, Romania & Constantin Brancusi University of Târgu Jiu, Faculty of Economic Science, Târgu Jiu, Romania
  • Stefan Margaritescu Doctoral School of Economic Sciences “Eugeniu Carada”, University of Craiova, Craiova, Romania
  • P. Vidhya Department of Corporate Secretaryship, Sri Ramakrishna College of Arts & Science Coimbatore Tamil Nadu, India
  • D. Renukadevi Department of Corporate Secretaryship, Sri Ramakrishna College of Arts & Science Coimbatore Tamil Nadu, India
  • P. Manochithra Department of Corporate Secretaryship, Sri Ramakrishna College of Arts & Science Coimbatore Tamil Nadu, India
  • N. Devaram Department of Corporate Secretaryship, Sri Ramakrishna College of Arts & Science Coimbatore Tamil Nadu, India

DOI:

https://doi.org/10.14419/97as0d66

Published

07-12-2025

Keywords:

Stock Market Integration; CNX Nifty; Global Financial Markets; Cointegration Analysis; Granger Causality

Abstract

Globalization has significantly increased the interdependence of financial markets, making the study of stock market integration highly ‎relevant. This research investigates the integration of the Indian stock market (CNX Nifty) with major global indices, including the New ‎York Stock Exchange (NYSE), NASDAQ, and the Shanghai Stock Exchange (SSE), over the period from January 2022 to December ‎‎2024. Employing statistical techniques such as cointegration tests and Granger causality, the study analyzes co-movements, interdepend‎encies, and causal relationships among these markets. The findings reveal long-term cointegration between the CNX Nifty and the global indices, indicating that these markets share a stable long-term relationship despite short-term fluctuations. Granger causality analysis ‎shows that the CNX Nifty has predictive influence over the NYSE but not over NASDAQ, while a bidirectional relationship exists with ‎the SSE Composite. These results provide valuable insights for investors and policymakers, highlighting the increasing significance of ‎India’s market in the global financial system and informing strategies for risk management and investment opportunities‎.

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How to Cite

Devaki, M. ., Shetty, S. K. ., Popescu, V. ., Birau, R., Margaritescu, S. ., Vidhya, P. ., Renukadevi, D. ., Manochithra, P. ., & Devaram, N. . (2025). Measuring Financial Integration: The Case of The Indian ‎Stock Market and Global Trends. International Journal of Accounting and Economics Studies, 12(8), 214-218. https://doi.org/10.14419/97as0d66

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