IDEAS home Printed from
   My bibliography  Save this article

Investigating The Impact Of Gold Price And Exchange Rates On Sensex: An Evidence Of India


  • Amalendu BHUNIA

    () (Kalyani University, Kalyani, India)

  • Sanjib PAKIRA

    () (Maharaja Manindra Chandra College, Kolkata, India)


The present paper investigates the impact of gold price and exchange rates on sensex in India for the period from January 2, 1991 to October 31, 2013 using daily data with the application of unit root test, Johansen cointegration test and Granger causality test have been designed. In other words, this paper investigates the affiliation between three financial variables of gold price, exchange rates and sensex between 1991 and 2013. In recent times, Indian investors are demonstrating uncase in the stock markets due to continuous rising of gold prices on account of no fear and no future loss. Again, exchange rate fluctuations will affect international trades, thus influence the stock market. Johansen cointegration test result indicates that there exists a long-term relationship among the selected variables. Granger causality test result shows that there must be either bidirectional or no causality among the variables.

Suggested Citation

  • Amalendu BHUNIA & Sanjib PAKIRA, 2014. "Investigating The Impact Of Gold Price And Exchange Rates On Sensex: An Evidence Of India," European Journal of Accounting, Finance & Business, "Stefan cel Mare" University of Suceava, Romania - Faculty of Economics and Public Administration, West University of Timisoara, Romania - Faculty of Economics and Business Administration, vol. 2(1), pages 1-11, February.
  • Handle: RePEc:scm:ejafbu:v:2:y:2014:i:1:p:1-11

    Download full text from publisher

    File URL:
    Download Restriction: no


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Srinivasan P., 2014. "Gold Price, Stock Price and Exchange rate Nexus: The Case of India," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 17(52), pages 77-94, June.

    More about this item


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:scm:ejafbu:v:2:y:2014:i:1:p:1-11. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Liviu Scutariu). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.