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

    Received date: October 14, 2025

    Accepted date: November 16, 2025

    Published date: December 7, 2025

  • 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.

  • References

    1. Bekaert, G., & Harvey, C. R. (2017). Emerging equity markets in a globalizing world. Journal of International Business Studies, 48(9), 1071–1099.
    2. Eun, C. S., & Resnick, B. G. (2018). International financial management (8th ed.). New York, NY: McGraw-Hill Education.
    3. Shapiro, A. C., &Balbirer, S. D. (2019). Modern corporate finance: Theory and practice (2nd ed.). Hoboken, NJ: Wiley.
    4. Mishkin, F. S., & Eakins, S. G. (2023). Financial markets and institutions (10th ed.). Boston, MA: Pearson.
    5. Ali, M. (2024). Integration of Indian stock markets with global indices: Evidence from Johansen cointegration and Granger causality analysis. New Delhi, India: Sage Publications.
    6. Kumar, R. (2024). Interdependence among Indian, Japanese, and U.S. stock markets: A cointegration analysis. London, UK: Routledge.
    7. Maharana, S. (2025). Volatility transmission and time-varying correlations in the Indian stock market: VAR, DCC-GARCH, and wavelet analysis approach. New York, NY: Springer.
    8. Gong, X., Liu, Q., & Ma, F. (2025). Geopolitical risk and tail-risk contagion in international equity markets: A two-layer network approach. Journal of Finance and Risk Management, 12(2), 1–20. https://doi.org/10.1186/s40854-024-00687-3.
    9. Bonga-Bonga, L., Mwamba, J. M., & Nkuna, O. (2025). Contagion or decoupling? Evidence from emerging stock markets using entropy-based tests. Risks, 13(9), 165. https://doi.org/10.3390/risks13090165.

  • Downloads

  • 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