Impact of Crude Oil Prices - coupled with Exchange Rate movements - on Indian Stock Market

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Pooja Agarwal

Abstract

Crude oil imports constitute more than one-fifth of India’s imports, and consequently affect the Indian economy significantly. The purpose of this paper is to understand how oil price changes affect the Indian stock market and economy. BSE Sensex is chosen as the ideal parameter to reflect movement in Indian stock market and economy, and Brent Crude quotations to represent the Crude Oil price. Various statistical tools and econometric tools have been applied on monthly information of Crude Oil prices, US$-INR conversion scale and Sensex movements, over last ten years, collected from different websites.

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