Title

The Impact of Macroeconomic Announcements on Equity Markets: Empirical Evidence from India.

Authors

Srividya, V.; Susana, D.

Abstract

Understanding the behavior of the investors during macroeconomic announcements gives insights into the causes of stock market volatility and the relationship between macroeconomic announcements and stock markets. The Volatility Index (VIX) is the well-known indicator for stock market uncertainty and the present study examines the behavior of the Indian VIX during six Indian and eight US macroeconomic announcements. The findings suggest that the Indian Index of Industrial Production (IIP) and the US Federal Open Market Committee (FOMC) meetings cause impact on the announcement days. However, the US employment situation causes impact on the days before, during and after the announcement.

Subjects

INDIA; STOCK exchanges; INDUSTRIAL production index; MARKET volatility; ANNOUNCEMENTS; SOCIAL marketing

Publication

IUP Journal of Financial Risk Management, 2019, Vol 16, Issue 2, p31

ISSN

0972-916X

Publication type

Academic Journal