Associations Among Gold Price, Crude Price and Indian Stock Market

Stock market in India is genuinely convinced by three major effects, that is, international crude oil price, gold price, and exchange rates. India imports about 80% of crude oil from the international market. Numerous striking changes in petroleum prices build a shock on inflation rates which consecutively shocks the stock market. Yet again, investors are screening less concern in the stock markets over and above investing in gold on account of rising tendency in gold prices as a result of non-panic and no potential loss. Over again, exchange rate rises and falls will influence international trade, and consequently influence the stock market. This research work is based on secondary data only which is collected from BSE database, NSE database, Index Mundi Database, RBI record, and world gold council database designed for 1991 (1st January) to 2013 (31st December) with 5541 observations. While analyzing the study, Augmented Dickey Fuller (ADF) unit root test, Philips-Perron (PP) unit root test, correlation statistics, linear regression model, Johansen cointegration test, and Granger causality test were used. This project work is properly divided into seven chapters.