Impact of Crude Oil Price Volatility on Stocks of Oil Companies and other Industries

##plugins.themes.academic_pro.article.sidebar##

Published Jun 1, 2014
Download
PDF
Statistic

Downloads

Download data is not yet available.

Metrics

Metrics Loading ...
Volume 4, Issue 1, June 2014

##plugins.themes.academic_pro.article.main##

Anand Patil
Alliance University, Anekal, Bangalore
V. K. Sawant
vitribai PhuleMahilaMahavidyalaya, Satara Maharastra

Abstract

In this era of economic growth the oil price changes have a significant effect on the development of the global economy. Crude oil is an important raw material for many industries, for some it is a primary raw material and for some it is a secondary raw material, so the extraordinary increase in the price of the oil is bound to warn the economy with inflationary tendencies. Hence most of the industries are affected directly or indirectly by the increase in the oil price. This report has analyzed the performance of stock market and the performance of various industries towards the crude oil price changes. For this purpose, this study has considered mainly BSE (Bombay Stock Exchange). This study has established the relationship between stock market with their crude oil benchmarks, MCX Crude Oil (Multi Commodity Exchange of India). It is based on the daily price stock price movement and crude oil price movement from 2008-2009 to 2012-2013. For analysis the first degree asset pricing model CAPM ( Regression model) and different statistical tests have been applied using MS excel

##plugins.themes.academic_pro.article.details##

How to Cite
Patil, A., & Sawant, V. K. (2014). Impact of Crude Oil Price Volatility on Stocks of Oil Companies and other Industries. SJCC Management Research Review, 4(1), 1–20. Retrieved from http://www.sjccmrr.res.in/index.php/sjcc/article/view/73

References

  1. • Shaharudin, Roselee S (2009) Performance And Volatility Of Oil And Gas Stocks: A Comparative Study On Selected O&G Companies International Business Research, Vol. 2, No. 4 Www.Csenet.Or/Joumal.Html.
  2. • Zhang, D. (2008). 'Oil Shock and Economic Growth in Japan: a Nonlinear Approach, Energy Economics, Vol. 30, No. 5, pp. 2374-2390.
  3. • Ewing, B. T. and Thompson, M. A. (2007). 'Dynamic Cychcal Components of Oil Prices with Industrial Production, Consumer Prices, Unemployment and Stock Prices Energy Policy, Vol. 35, pp. 5535-5540.
  4. • Imarhiagbe Samuel (2010), "Impact of oil prices on stock markets: empirical evidence from selected major oil producing and consuming countries", global journal of finance and hanking issue vol 4 no. 4 2010. Available onhttp://www.globip.com/pdf_pages/globalfmance-vol4-article2.pdf
  5. • Glosten, L. R., R. Jagannathan, and D. E. Runkle, (1993) "On the relation between the expected value and the volatility of the nominal excess return on Stocks," Journal of Finance 48, p. 1779-1801.
  6. • Mossin, J., 1996. Equilibrium in a capital asset market, Econometrica 22, 265-290.
  7. • Sharpe,w., 1964. Capital asset prices: a theory of market equilibrium under conditions of risk. Journal of Finance 19, 425-442
  8. • Sunil K. Mohanty,Mohan Nandha, (2011) "Oil Risk Exposure: The Case of the U.S. Oil and Gas Sector" The Financial Review 46 (2011) 165-191
  9. Website
  10. http://petroleum.nic.in/