Examining Associations between NIFTY 50 and Selected International Stock Markets

Abstract

In today's globalized economy, the performance of stock markets has become more interconnected. For investors, legislators, and organizations looking to evaluate risk and optimize returns, it is essential to comprehend these connections. The NASDAQ (USA), Nikkei 225 (Japan), FTSE 100 (UK), and Euro Stoxx 50 (Europe) are among the global indices that are examined in this study in relation to the Indian NIFTY 50 index. The study uses statistical techniques like regression analysis, correlation, and descriptive statistics to determine the degree of market interdependence using secondary data from monthly returns over a ten-year period (2015–2025). The results show different levels of correlation between the NIFTY 50 and developed market indices, with the U.S. and European markets showing a stronger degree of integration than their Asian counterparts.