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VOL. 7, ISSUE 2 (2025)
A study on stock markets correlation among major global economies during the global recession period
Authors
Dr. Siddhartha Sankar Saha, Rapti Deb
Abstract
Globalization has profoundly transformed economic and financial
backgrounds, dismantling barriers to cross-border capital flows and fostering
greater investor participation in international markets. This progression has
deepened financial integration, evident in the heightened co-movement of global
stock indices. Technological advancements and rapid communication innovations
have further reinforced this interconnectedness by enhancing market liquidity,
streamlining trading processes, and bolstering investor confidence on a global
scale. The study observes the correlation dynamics between India’s S&P BSE
SENSEX and 21 major stock indices from Asia, America, and Europe during the
Great Recession period, leveraging descriptive statistical analysis and the
non-parametric Spearman Rank Correlation method as found by the normality
assumption test. The Correlation matrix reveal that India’s S&P BSE SENSEX
exhibits weak correlations with American as well as European indices,
underscoring its relative detachment from global financial trends. Most Asian
indices demonstrate low to moderate correlations with the remaining sample
indices, reflecting slightly stronger global integration. Intra-Asian
correlations indicate moderate regional linkages, while European indices
exhibit significantly stronger interdependence among them, driven by cohesive
economic policies and deeper regional integration. Asian indices, excluding
India, show relatively stronger ties to European markets, than American
indices, highlighting their roles as intermediaries in global finance. China’s
SSE, however, shows statistically insignificant correlation with India,
signifying divergent market trajectories.
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Pages:75-82
How to cite this article:
Dr. Siddhartha Sankar Saha, Rapti Deb "A study on stock markets correlation among major global economies during the global recession period". International Journal of Management and Commerce, Vol 7, Issue 2, 2025, Pages 75-82
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