Volume: 11 Issue: 1
Year: 2023, Page: 59-77,
Received: May 9, 2023 Accepted: May 12, 2023 Published: May 23, 2023
This paper is directed towards a study as to how crude oil prices affect some blue-chip companies listed in NSE. It is important to understand whether crude oil prices cause volatility in some blue-chip stock prices, as the blue-chip companies are major driving forces behind the growth of economy. Secondary source of data is being used in this research. The indicators considered for the study are Stock prices of blue-chip companies listed in NSE. The data is collected for a period of 5 year i.e., 2014–2019. Granger causality test is used to determine whether crude oil prices cause volatility in blue chip stock prices. As per the results, it was found that variation in stock prices of ITC and ONGC causes volatility in crude oil prices whereas variation in crude oil prices causes volatility in stock prices of ICICI Bank. It was also found that variation in crude oil prices does not cause volatility in stock prices of other blue-chip companies. Investors should focus on crude oil price volatility before buying ICICI stock. Special focus should be given on health of ONGC and ITC as volatility in their prices causes volatility in crude oil price.
Keywords: Crude oil prices, Blue-chip companies, NSE (National Stock Exchange), Stock price volatility, Granger causality test.
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CHIKKUR S. AN EMPIRICAL STUDY ON EFFECT OF OIL PRICES ON SELECTED BLUE-CHIP COMPANIES IN NSE DURING 2014-2019. IEMSJMR.2023;11(1):59-77