Jul 2026· Veredas do Direito· Vol 23, pp. e237209· 0 citations· 17 references
Abstract
In the context of financial economics, the complex relationship between foreign currency exchange rates and stock prices are not easily comprehensible. The global integration of domestic and international financial markets has opened up new opportunities and consequently exposing the financial system to sizable risks in the Indian economy. The purpose of the study is to analyse the impact of different foreign exchange rates, viz USDINR, EURINR, GBPINR, JPYINR on the Nifty 50 index. This research is based on secondary data and quantitative in nature. The data has been collected from the websites of Wall Street Journal, Bloomberg, investing.com and finance.yahoo.com. The weekly closing value of USDINR, EURINR, GBPINR, JPYINR and the Nifty-50 stock market index have been collected for a period of 16 years, from 24th September, 2007 to – 25th September, 2023. The four currency pairs, USDINR, EURINR, GBPINR, JPYINR have been taken as the sample to represent the FOREX market, and the index NIFTY-50 in India are examined. The econometric and statistical tools used to analyse the time series data in this research are (a) descriptive statistics (b) Unit Root test (stationarity) (c) cointegration test (d) regression analysis (e) Auto-correlation test, (f) heteroskedasticity test, (g) GARCH model (f) T-GARCH, (g) E-GARCH. The cointegration test reveals that there is no long-term association between NIFTY-50 and USDINR, EURINR, GBPINR and JPYINR. However, the Granger causality test finds short-term association between NIFTY-50 and USDINR, EURINR and JPYINR. The OLS regression analysis reveals that the beta of USDINR, EURINR, GBPINR and JPYINR are significant predictors of NIFTY-50. Moreover, the R-Square is found to be 30.47%, which shows the soundness of the regression fit. GARCH is a symmetric model and the analysis shows that the beta of GARCH (1,1) are significant. Therefore, it can be concluded that GARCH effects exist and it can be used to forecast the variance of NIFTY-50. The asymmetric GARCH models like TARCH and EGARCH reveals the presence of asymmetrical effect in the data series. Therefore, the investors have to be careful about the type of information with respect to USDINR, EURINR, GBPINR and JPYINR exchange rates in general and negative information in particular.
The present study examines the impact of selected macroeconomic variables on stock market performance in India, with specific reference to the Nifty 50 Index during the period from June 2025 to May 2026. The study aims to analyse the movement of Nifty 50 closing values and to evaluate the influence of CPI inflation, repo rate, USD/INR exchange rate, and India’s 10-year government bond yield on equity market performance. The study tests the null hypothesis that macroeconomic variables do not significantly affect stock market performance in India against the alternative hypothesis that they exert a significant influence. A descriptive and analytical research design has been adopted, based entirely on secondary data collected from recognised institutional sources, including NSE India, MoSPI/NSO, RBI MPC, FBIL, CCIL, and RBI DBIE. Since CPI inflation data for May 2026 were unavailable, inferential analysis was conducted using eleven valid monthly observations from June 2025 to April 2026. Descriptive statistics, trend analysis, Pearson correlation analysis, and multiple regression analysis were employed for empirical examination. The trend results reveal that the Nifty 50 declined from 24,812.05 in June 2025 to 23,643.50 in May 2026, representing a fall of 4.71%, while the rupee depreciated and bond yields increased during the period. Correlation analysis identified significant negative relationships between Nifty 50 and CPI inflation (r = -.682, p = .021) and between Nifty 50 and the 10-year bond yield (r = -.776, p = .005). The regression model reported R = .865 and R² = .748, indicating considerable explanatory power; however, the model was not statistically significant at the 5% level (F = 4.449, p = .052). Accordingly, the null hypothesis is not rejected at the 5% level, although marginal evidence of macroeconomic influence is observed at the 10% level. The findings underscore the relevance of macro-financial stability for equity market performance, subject to the limitation of the short study period and small sample size.
Christian Orlin Wilsonbhai, Dr. Dixitabahen M. Oza· Vidhyayana· 0 citations
Nigerian investors diversifying into international markets face a significant obstacle in the form
of foreign exchange risk, but there is a startling lack of empirical data on its effects. This study
closes this gap by carefully examining the impact of Naira volatility (NGN/USD, NGN/GBP, and
NGN/EUR) on the risk-adjusted performance of international portfolios. We use comparative
hedging simulations and multivariate regression using monthly data from 2010–2023, which
includes Nigeria’s 2016 capital liberalisation, several currency crises, and the 2023 Naira float.
Key findings show that oil price fluctuations and inflation discrepancies increase losses, and that
a 1% increase in forex volatility lowers real risk-adjusted returns (Sortino ratio) by 0.62% (*p*
< 0.001). Importantly, despite transaction costs, forward contracts through Nigeria's Investors' &
Exporters' window prove to be the best hedge, providing net returns during crises that are 10.8
percentage points higher than unhedged portfolios.
Isibor Areghan PhD· Journal of Accounting and Fi...· 0 citations
Stock price movements among basic materials sector issuers on the Indonesia Stock Exchange (IDX) are influenced by internal corporate financial conditions and macroeconomic shifts. This study examines the impact of Return on Equity (ROE), Current Ratio (CR), Earnings per Share (EPS), exchange rates, and economic growth on stock prices in this sector from 2021 to 2025. Utilizing a quantitative approach, secondary panel data were collected from official reports published by the IDX, Bank Indonesia, and the Central Bureau of Statistics (BPS). Purposive sampling selected 27 companies, yielding 128 observations analyzed via the Fixed Effects Model (FEM) in EViews 12. The empirical findings indicate that ROE does not significantly affect stock prices. Conversely, CR, EPS, and the exchange rate significantly and negatively influence stock prices, while economic growth exhibits a significant positive impact. Jointly, all independent variables simultaneously affect stock prices, with an R-squared (R2) value of 97.55%. These insights indicate that equity valuation in this industry is highly responsive to liquidity, per-share earnings, currency depreciation, and overall economic progress. Consequently, investors and executives must evaluate these metrics to optimize strategies.
Gold has occupied a unique position in the global financial system, functioning historically as a medium of exchange, a store of value, and, more recently, as a safe-haven asset that investors and central banks turn to during periods of economic uncertainty. Although the world has moved away from the gold standard to a system of fiat currencies, gold continues to exert a measurable influence on foreign exchange markets, particularly through its inverse relationship with the US dollar and its impact on India's trade deficit through gold imports.
This research paper examines the relationship between gold trading and foreign currency values, with specific attention to the Indian Rupee (INR) and the United States Dollar (USD). The study is grounded in both secondary research — drawing on the classical gold standard, the Bretton Woods system, and prior empirical literature — and primary research conducted through a structured questionnaire administered to 73 respondents.
Using descriptive statistics, Chi-Square tests of independence, and Kendall's tau-b correlation analysis, the study finds that a statistically significant majority of respondents perceive gold demand as a significant influence on currency value (χ² = 29.699, df = 2, p < 0.001), and that perceptions of gold's linkage to India's trade and fiscal balance are significantly correlated with perceptions of gold as a superior store of value relative to fiat currency (τ = 0.270, p = 0.017; τ = 0.254, p = 0.023). These findings support the alternative hypotheses that gold is directly related to currency valuation and that investor sentiment toward gold as a safe-haven asset meaningfully affects foreign currency markets.
The study concludes that while gold no longer anchors currency values under a formal standard, its behavioural and macroeconomic linkages to the INR and USD remain strong, awareness among the investing public is broadly positive, and policymakers must continue to weigh the trade-off between gold's cultural and investment demand and its impact on India's foreign reserves.
M. Rathod, M. Soneji· International Journal of Eco...· 0 citations
The stock market is a vital component of the financial system that facilitates capital formation and wealth creation. It provides a platform for companies to raise long-term funds and offers investment opportunities for individuals and institutions. Despite its growing importance in India, a significant portion of the population still lacks basic awareness of how the stock market functions. This study aims to explain the basics of the stock market, its structure, key participants, and its contribution to economic growth using secondary data sources. Data was collected from National Stock Exchange (NSE), Bombay Stock Exchange (BSE), Securities and Exchange Board of India (SEBI), RBI reports, and published academic literature from 2019 to 2025. The analysis indicates that market capitalization of Indian stock markets crossed USD 4.5 trillion in 2024, making India the 5th largest stock market globally, while the number of demat accounts exceeded 16 crore. However, retail participation remains concentrated in urban areas, with limited financial literacy in rural regions. The paper concludes with suggestions to improve investor awareness and promote safe investing practices.
**Keywords:** Stock Market, BSE, NSE, SEBI, Equity, Demat Account, Sensex, Nifty, Financial Literacy, Secondary Data
Dr.R. Ranganath, S. B G· International Journal of Cre...· 0 citations
