A Quantile Dependence among Exchange Rate, Stock Prices and Oil Prices: An Empirical Evidence from India

Salem Hamad Aldawsari, Wei Shuen Tan, Tarek Abbas Elsherazy, Bisharat Hussain Chang, Haitham M. Alzoubi, Ivana Ognjanović

Research output: Contribution to journalArticlepeer-review

Abstract

This study investigates the dynamic relationship between exchange rates, oil prices, and stock prices in the Indian market, considering bearish, bullish, and neutral market states. By utilizing the Quantile ARDL method, we explore long- and short-run relationships in differing market states. The variations in sensitivities of oil prices and exchange rates with stock prices across diverse quantiles reflect significant variations in the Indian equity markets. Importantly, our study provides actionable insights for policymakers and stakeholders within India, empowering them with specific strategies for managing currency, stock prices, and oil prices under diverse market states. These insights are not just theoretical but directly applicable to real-world economic and financial decision-making, enhancing the ability of policymakers and stakeholders to navigate the complex Indian market.

Original languageEnglish
Article number2450010
JournalAnnals of Financial Economics
Volume19
Issue number3
DOIs
StatePublished - 1 Sep 2024

Keywords

  • India
  • Oil prices
  • exchange rate
  • quantile ARDL model
  • stock prices

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