Impact of Equities' Price Behaviour on Selected Commodity w.r.t. Zinc (Commodity) vs Hindustan Zinc (Equity): An Indian Market Perspective

Abstract: Indian Stock markets are growing rapidly as like stock exchanges in China, U.S. & UK, among others. In earlier days the investment in stock market was less under coverage due to lack of knowledge in equity & other related options which are related to stock markets. Even in stock exchanges there is a plethora of choices like investment in equity markets, commodities, debentures, mutual funds, exchange traded funds, among others. Depending on the investors risk taking ability they are investing in different options. People like more risk, they may prefer investing in derivatives, commodities & exchange traded funds which have very high risk & return too; whereas investors prefer less risk may go for mutual funds, debentures & equity market sometimes. This study helps the investors to compare commodity Zinc which is traded in commodities market like MCX, NCDEX, ICEX, among other, with common equity stocks like Hindustan Zinc which are traded in equity markets like NSE & BSE. This study aims to find the impact of the price behaviours of equities with the selected commodity. The scope of the study includes that the investors can get a better conclusion on where to invest, which company can be invested, which sector is going good, what is the exact relationship between equity & commodity markets of same industry. The limitation is that the study includes time frame of 6 months and covers only Indian perspective not on broader aspect. All the data are considered here are of parametric variables & samples in nature. The tools used are F-test, correlation, among others. The finding says that there is a key relationship between the selected equity shares with corresponding commodity options. So it is better concluded that the investors are advised to be rational than herding which means to use common sense & no group sense. Keywords: Commodity Markets, Equity Markets, F-Test, Parametric Variables, Correlation, Strong relationship between Commodity & Equity Markets JEL Classification Number: G10, G12, Q02