RELATIONSHIP BETWEEN COMMODITIES MARKET AND STOCK MARKETS EVIDENCE FROM MALAYSIA AND CHINA

RELATIONSHIP BETWEEN COMMODITIES MARKET AND STOCK MARKETS EVIDENCE FROM MALAYSIA AND CHINA

S.SUJATHA                                                                                               Srikanth Erraboina
Assistant Professor                                                                                MBA STUDENT (22R01E0044)

CMRIT Kandlakoya, Medchal                                                               CMRIT Kandlakoya, Medchal

Sujathaprasad7363@gmail.com                                                          srikantherraboina870@gmail.com

Introduction

The stock-commodity link affects market participants, commodity producers, policymakers, and, in emerging nations, the entire economy. The lead-lag relationship between market representative indices can be studied using many methodologies. This initiative examines the Indian stock-commodity market interaction.

This project will leverage secondary data from the National Stock Exchange, Multi Commodity Exchange of India Limited, and Bombay Stock Exchange websites. Project results can be used to create an investment plan. Thus, market participants must draw crucial inferences or discover important relationships between the Indian Stock Market and Commodity Market.

Statement of the Problem

Market players and investors face difficult portfolio decisions. People struggle to choose stocks and commodities like gold, copper, etc. Due to a lack of credible market data on the Indian Stock Market-Commodity Market connection.

The lack of research on the Indian stock-commodity market link is the issue. Such a study is needed, using some of the top marketplace contributors as examples.The project's results should help regulators and market participants understand the problem and adopt appropriate laws, rules, policies, and methods. Investors and individuals have confirmed the issue.

.Objectives of the Study

The following objectives are the focus of the project study.

·         To make important inferences about the way the Indian Stock Market and Commodity Market interact;

·         to ascertain the type, scope, and direction of the link between the Indian Commodity Market and the Indian Stock Market.