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Monetary Policy Announcement and Stock Returns - Evidence From Long-Term Repo Operations in India

Author

Listed:
  • Radeef Chundakkadan
  • Subash Sasidharan

    (Department of Liberal Arts, Indian Institute of Technology Bhilai, India)

Abstract

This paper investigates the impact of unconventional monetary policy on stock returns using the Reserve Bank of India’s long-term repo operations (LTROs). We provide evidence that firms listed on the Bombay Stock Exchange register higher returns on the days of LTRO announcements. We also find the stock returns of bank-dependent and financially constrained firms to be relatively higher on the days of announcements.

Suggested Citation

  • Radeef Chundakkadan & Subash Sasidharan, 2021. "Monetary Policy Announcement and Stock Returns - Evidence From Long-Term Repo Operations in India," Asian Economics Letters, Asia-Pacific Applied Economics Association, vol. 0(-), pages 1-5.
    • Handle: RePEc:ayb:jrnael:53
    DOI: 2021/11/06
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    References listed on IDEAS

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    Cited by:

    1. Feng, Ying & Wang, Hong & Sha, Yezhou, 2023. "Delamination of information disclosure and stock price synchronicity — Evidence from China’s NEEQ market," Economic Analysis and Policy, Elsevier, vol. 80(C), pages 614-623.
    2. Behera, Harendra & Gunadi, Iman & Rath, Badri Narayan, 2023. "COVID-19 uncertainty, financial markets and monetary policy effects in case of two emerging Asian countries," Economic Analysis and Policy, Elsevier, vol. 78(C), pages 173-189.
    3. Prabheesh, K.P. & Sasongko, Aryo & Indawan, Fiskara, 2023. "Did the policy responses influence credit and business cycle co-movement during the COVID-19 crisis? Evidence from Indonesia," Economic Analysis and Policy, Elsevier, vol. 78(C), pages 243-255.

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    More about this item

    Keywords

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    JEL classification:

    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • N15 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Asia including Middle East

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