Journal of Contemporary Issues in Business and Government

Abstract

The motivation of the present study to investigate and understand the correlation of adjusted closing prices of forex and index (EUR/INR, GDP/INR, Nifty50, CNXIT) which is traded at National Stock Exchange, India. The empirical analysis of three years of data with the help of E-views software. After investigation, it can conclude there is a steady correlation ship among the group. CNXIT having a more robust relationship with Forex as compare to Nifty50. It shows a short-run equilibrium relationship variable but, long-run equilibrium among variables, but shows a very strong co-relation among all the research variable (EUR/INR, GDP/INR, Nifty50, CNXIT. Due to above support it determine the unidirectional price detection dynamics. The co-integration test allows high degree of relationships among variables.