EXPLORING THE STOCK MARKET CORRELATION AMONG INDIA AND FIVE AMERICAN ECONOMIES DURING THE GLOBAL FINANCIAL CRISIS PERIOD AND POST-FINANCIAL CRISIS PERIOD

In an increasingly interconnected financial landscape, understanding the co-movements between emerging and developed stock indices is crucial for managing portfolio risks and secure investment. This paper provides a thorough correlation analysis among the calculated returns from indices of India (S&P BSE SENSEX) and five major American countries—US (S&P 500), Canada (S&P/TSX Composite), Brazil (IBOVESPA), Mexico (IPC MEXICO), and Argentina (MERVAL) during three key intervals: the pre-crisis phase (June 3, 2003 – August 2, 2007), the global financial crisis phase (August 7, 2007 – April 16, 2009), and the post-crisis phase (April 20, 2009 – December 30, 2019). Employing calculated returns from daily adjusted stock index closing values and analyzing descriptive statistics alongside correlation metrics, this paper assesses stock-market integration levels. Normality diagnostic test was performed to determine the most suitable correlation approach. Normality test results inferred the application of the non-parametric Spearman Rank Correlation method. The correlation matrix designates persistently weak limited correlation among S&P BSE SENSEX (India) and the five chosen indices from the American region, over the three intervals, suggesting low financial integration and highlighting opportunities for investment diversification in these markets. These findings serve as a basis for crafting resilient investment strategies amidst global financial fluctuations