Short-Term Integration of Indian Stock Market with BRICS Nations: An Empirical Analysis

The short-term integration of the stock markets of the BRICS countries (Brazil, Russia, India, China, and South Africa) and India is examined in this short communication. Correlation and cointegration tests have been employed by using three months daily stock return data. The findings indicated that there is a considerable degree of short-term integration, with particular sensitivity to outside variables like oil prices and world economic uncertainty. These findings have important ramifications for risk management and portfolio diversification in developing markets. Notably, these markets are heavily influenced by outside variables like world oil prices and economic uncertainties. These findings emphasize the potential and difficulties in mitigating cross-market risk, offering insightful information to investors and governments interested in emerging economies.