Exploring the Interconnected Relationship Between NASDAQ and NIFTY


In a groundbreaking discovery, a new study reveals a surprising twist in the global financial dance: India’s NIFTY index is now wielding significant influence over its American counterpart, the tech-heavy NASDAQ. This research, conducted by Mr. Deep Ajabani and Dr. Pankaj Sharma, sheds light on the intricate web of connections binding these two key market movers.

For years, investors have watched the NASDAQ dictate trends, acting as a bellwether for global economic health, particularly in the tech sector. But this latest study, employing sophisticated econometric tools, flips the script. The analysis, spanning two years of data, reveals a causal link where past performance of NIFTY predicts future movements in NASDAQ.

“This finding challenges the traditional perception of a one-way flow of influence,” explains Mr. Ajabani. “Our research suggests that the Indian market is no longer just a follower, but actively plays a role in shaping the trajectory of US tech stocks.”

The study sheds light on the “why” behind this shift. The authors point to the growing prominence of Indian tech giants like TCS and Infosys, coupled with increased foreign investment in the NIFTY, as potential driving forces.

The implications of this newfound relationship are far-reaching. Investors, analysts, and policymakers alike can leverage these insights to navigate the complexities of the global financial landscape. For instance, understanding NIFTY’s influence on NASDAQ can help tailor investment strategies and risk management approaches.

This research, however, is just the beginning. The authors acknowledge the need for further investigation to uncover the precise mechanisms behind NIFTY’s causal impact. Additionally, incorporating more recent data could provide a dynamic picture of how these interconnected markets evolve over time.

“Our study opens a new chapter in understanding the interplay between these two major indices,” concludes Mr. Ajabani. “As the global financial landscape continues to reshape, staying abreast of these evolving dynamics will be crucial for navigating the opportunities and challenges that lie ahead.”

This article captures the essence of the research paper while presenting it in a concise and engaging format for a wider audience. It highlights the key findings, emphasizes the practical implications, and leaves the reader with a sense of intrigue about the future of these interconnected markets.

If you want to read the whole research work done by Mr. Deep and Dr. Sharma it is available here on Google Scholar.

https://scholar.google.com/citations?view_op=view_citation&hl=en&user=-lUFGU0AAAAJ&authuser=1&citation_for_view=-lUFGU0AAAAJ:u5HHmVD_uO8C

Or on published journal itself: https://sachetas.in/index.php/Sachetas/article/view/172


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