Jan' 22

The IUP Journal of Applied Finance

Focus

  • Business Environment
  • Regulatory Environment
  • Equity Markets
  • Debt Market
  • Corporate
  • Finance
  • Financial Services
  • Portfolio Management
  • International Finance
  • Risk Management

Article   Price (₹)
Determinants of Gold Price in Thailand
100
Linkages Between the Movement of Sectoral Indices and Macroeconomic Variables in Indian Stock Market: An Empirical Study
100
The Impact of Buyback Announcement on Indian IT Stock Prices: An Event Study Approach
100
Urban Unorganized Sector Enterprises' Access to Insurance Services in Assam
100
Maize Futures Market in India: Problems and Prospects
100
Articles

Determinants of Gold Price in Thailand
Somkid Yakean

Though gold plays a significant role in the financial market, monetary policy, and jewelry, pharmaceutical and electronic industries, its price is often volatile. This study aims to examine the relationship between macroeconomic variables such as exchange rate, interest rate, consumer price index, and financial indicators like the stock exchange of Thailand (SET Index) and bond index with gold prices, and investigate the factors influencing the gold prices in Thailand. This study employs dataset from May 2006 to May 2021, including 1.5 years of the Covid-19 pandemic period. The findings reveal that there is a relationship between exchange rate, interest rate, consumer price index, SET Index, and bond index with gold prices in Thailand, and this holds good during the period of Covid pandemic also. Finally, all the participants in the gold market should consider these factors before entering the market, which would assist them in achieving their investment goals.


© 2022 IUP. All Rights Reserved.

Article Price : ? 100

Linkages Between the Movement of Sectoral Indices and Macroeconomic Variables in Indian Stock Market: An Empirical Study
Sitaram Pandey

The objective of this study is to examine the dynamic linkages between the movement of Indian stock market sectoral indices and the three macroeconomic variables, namely, oil price, gold price and exchange rate, for the period 2016 to 2020. The data of sectoral indices was collected from Bombay Stock Exchange. The underlying series is evaluated as non-stationary at level, but stationary in the first difference, using the Augmented Dickey-Fuller unit root test. The use of the Multivariate Cointegration and Vector Error Correction Model suggests that there are long-term connections between macroeconomic variables and sectoral indices, specifically in the information technology sector. Meanwhile, the analysis based on Vector Autoregression Model technique indicates that there are short-run linkages between macroeconomic variables and sectoral indices, namely, basic materials, fast moving consumer goods, finance, healthcare, information technology, auto, bankex, power, and realty. The results document that oil price, gold price and exchange rate simultaneously have a significant effect on sectoral indices in Indian stock market. To stabilize the stock market post Covid-19, the authorities are advised to put economic policies sector-wise to accelerate economic growth and to maintain fiscal discipline. They need to stabilize the above-mentioned macroeconomic variables to accelerate the economic growth as the exchange rate has a significant negative impact on all sectors.


© 2022 IUP. All Rights Reserved.

Article Price : ? 100

The Impact of Buyback Announcement on Indian IT Stock Prices: An Event Study Approach
Neetu Yadav

The paper examines the impact of share buyback on stock prices of the Indian Information Technology (IT) firms selected from Nifty 500. The event study methodology is used to analyze the impact of share buyback announcements of 13 IT companies. The data constitutes 24 buyback announcements during the period 2013-2019. The results indicate that all the IT companies in the sample have negative average abnormal returns, implying that the Indian stock market, with regard to IT firms, is very efficient to assimilate every information.


© 2022 IUP. All Rights Reserved.

Article Price : ? 100

Urban Unorganized Sector Enterprises' Access to Insurance Services in Assam
Prasenjit Bujar Baruah

A majority of the unorganized sector enterprises are meant for sustaining the livelihood of the entrepreneurs' households. So, any problem in such business activity may adversely affect the income of such households. The insurance coverage of these enterprises may reduce such risks. Motivated by this point, this paper, based on primary data collected from a customized sample survey, tries to examine the urban unorganized enterprises' access to insurance services in Assam. A majority of the sample entrepreneurs have access to life insurance services. However, access to business insurance is not satisfactory. A logit model is estimated for the determinants of urban unorganized enterprises' access to business insurance. The results show that turnover, registration, and value of fixed assets and equipment of the enterprise, and level of education of the entrepreneurs have a positive impact on its business insurance coverage.


© 2022 IUP. All Rights Reserved.

Article Price : ? 100

Maize Futures Market in India: Problems and Prospects
Jyothi Shivakumar N M, Bharath V and G Kotreshwar

The efficiency of a futures market is generally determined based on price volatility and price discovery process. The study involves an empirical analysis of the problems and prospects of Maize Futures Market (MFM) using three parameters: volatility, price discovery, and hedging. MFM failed to measure up to any of these parameters. There exists enough empirical evidence to show the persistence of a high level of volatility in futures prices. As regards the price discovery process, it is found that the MFM is yet to evolve. It needs to be more efficient in terms of capturing and reflecting the new information in its price change, thereby causing and leading the spot market. Certain policy initiatives are imperative for strengthening MFM in India. There is a need to create a greater awareness level amongst the stakeholders, particularly the farming community. There is a greater need to add capacity by creating more maize futures market delivery centers and revision on the part of contract margin and other specifications.


© 2022 IUP. All Rights Reserved.

Article Price : ? 100