Causal Nexus between the Anamolies in the Crude Oil Price and Stock Market

Iqbal Thonse Hawaldar, T. M. Rajesha, Lokesha Lokesha and Adel M. Sarea
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Iqbal Thonse Hawaldar: Department of Accounting and Finance, College of Business Administration, Kingdom University, Bahrain,
T. M. Rajesha: Institutional Assessment Administrator, Accreditation and Quality Assurance Centre, Kingdom University, Bahrain
Lokesha Lokesha: Government First Grade College Punjalakatte, Karnataka, India,
Adel M. Sarea: College of Business and Finance, Ahlia University, Bahrain.

International Journal of Energy Economics and Policy, 2020, vol. 10, issue 3, 233-238

Abstract: The paper attempts to examine the causal association between the crude oil price anomalies and stock market returns in the Indian stock market. The study covers nine years starting from 2009 to 2018, and the study includes ten companies in the oil drilling and exploration sectors listed in the BSE SENSEX and CNX NIFTY indexes. We employed correlation tests in determining the relationships amongst the stock market return, crude oil price and market benchmarking indexes. Our study concludes that the oil price shocks is not directly affecting the stock prices of oil-related firms; instead, its indirectly impacting the economy through different channels such as fiscal, trade and price channels. We also suggest the need for future researches in determining the effect of oil price variations on the macroeconomic factors by precisely diagnosing the role of channels mentioned above.

Keywords: Oil prices; Stock market; Crude oil price; Emerging Markets; Indian stock market (search for similar items in EconPapers)
JEL-codes: G12 G15 Q43 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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