An Econometric Analysis of India’s Performance in International Cricket and Returns in Indian Stock Market

Manminder Singh Saluja¹ , Vishakha Badjatiya²

Section:Research Paper, Product Type: Journal-Paper
Vol.4 , Issue.4 , pp.15-19, Aug-2017

Online published on Aug 30, 2017

Copyright © Manminder Singh Saluja, Vishakha Badjatiya . This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
 

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Abstract :
This research paper examines the impact of the performance of the Indian cricket team in international cricket matches on the returns of the Indian stock market. The study is based on the concept of behavioural finance, which suggests that large sporting events can influence the sentiments of viewers and investors, leading to mood swings in the market and reflected in stock prices. The paper explores two potential reasons why the stock market may react to the sporting performance of the national team: the "feel-good" factor associated with national sporting success and the economic benefits derived from international tournaments. The study uses a dummy variable regression model to analyze the data from the period 2005-2015, considering one-day international and T-twenty matches played by the Indian cricket team. The results indicate that cricket match outcomes and the location of the matches have a significant impact on stock market returns. The findings provide insights into the linkages between sporting events, investor behavior, and market volatility, contributing to the existing literature on the subject.

Key-Words / Index Term :
Dummy Variable Regression Model, Sporting Events, Stock Market Performance, Indian Cricket Team, Investor Behavior

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