Monetary Policy Announcements and Stock Returns: Some Further Evidence from India

Khuntia, Sashikanta; Hiremath, Gourishankar S.

doi:10.1007/s40953-019-00158-y

Cited by 8 publications

(3 citation statements)

References 42 publications

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“…Despite the fact that this method has a couple of limitations but it is the most pertinent and dependable technique to study the effects of change in any policy on the concerning factor. This method is also advocated by (Bernanke and Kuttner, 2005;Hansen and Tarp, 2001;Khuntia and Hiremath, 2019). In order to observe the reform effect, we estimate nine regression models using a time dummy variable.…”

Section: Methodsmentioning

confidence: 99%

Stock Market Reforms and Stock Market Performance

Chellaswamy

Natchimuthu

Faniband

2021

IJFR

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This paper analyses the impact of stock market reforms on the stock market performance in India using regression based event-study method. We consider nine stock market reforms introduced from 1998 to 2018. We find that the impact of stock market reforms on Nifty trading volume and Nifty return is different. This paper documents that the impact of the additional volatility measures, T+3 and T+2 settlement cycles, and margin provisions for intra-day crystallized losses reforms show a positive impact on trading volume post-reform. In contrast, internet trading, prohibition of fraudulent and unfair trade practices, delisting of equity shares, substantial acquisition of shares and takeovers listing obligations and disclosure requirements reforms decrease the trading volume post-reform. Our results of Nifty return reveal that the additional volatility measures, the T+2 settlement cycle, the prohibition of fraudulent and unfair trade practices, substantial acquisition of shares and takeovers, listing obligations and disclosure requirements have a significant and positive impact on return post-reform. It is evident that the impact of all nine stock market reforms is insignificant on Nifty return.

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Section: Methodsmentioning

confidence: 99%

Stock Market Reforms and Stock Market Performance

Chellaswamy

Natchimuthu

Faniband

2021

IJFR

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“…RBI's monetary policy has been hawkish except during the 2008 crisis (Hiremath, 2019). Khuntia and Hiremath (2019) show that a hike in interest rates dominated the monetary policy announcements, which hardly affected the markets. Nevertheless, the central bank has recently cut interest rates to boost growth.…”

Section: Notementioning

confidence: 95%

Export Performance of MSMEs in India: Is Credit Constraint an Invisible Gorilla?

Hiremath

Deb

2021

The Indian Economic Journal

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We examine the effects of foreign currency borrowings (FCBs) and domestic market constraints on the performance of the export of the micro, small and medium enterprises (MSMEs) during the period 1988–2019. Our results show that access to the FCBs improved the performance of the MSME exports, indicating the importance of credit accessibility. MSMEs effectively utilise the grants when accompanied by credit facilities such as FCBs. We find that the high cost of debt and lack of financial development adversely affect the exports, as MSMEs are unable to borrow. The rupee depreciation alone does not help the MSMEs reap such depreciation benefits due to the lack of domestic credit. The recent policy stance of emphasis on MSMEs is expected to improve export performance. This study calls for the specialised window for the MSMEs to meet low cost and easy credit. The findings suggest stepping up grants to the MSMEs to improve the export performance. JEL Codes: F14, F34, F2, F31

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“… 7 See for example Agarwal ( 2007 ), Sasidharan ( 2009 ), Prabu et al ( 2016 ), Khuntia and Hiremath ( 2019 ), Das et al, ( 2020b ), Lakdawala and Sengupta ( 2021 ) and Ahmed et al ( 2022 ) …”

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confidence: 99%

Impact of RBI’s monetary policy announcements on government bond yields: evidence from the pandemic

2023

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We investigate how the bond market responded to the Reserve Bank of India’s (RBI) monetary policy actions undertaken since the start of the pandemic. Our approach involves combining a narrative analysis of the media coverage together with an event-study framework around RBI’s monetary policy announcements. We find that the RBI’s actions early in the pandemic were helpful in providing an expansionary impulse to the bond market. Specifically, long-term bond interest rates would have been meaningfully higher in the early months of the pandemic if not for the actions undertaken by the RBI. These actions involved unconventional policies providing liquidity support and asset purchases. We find that some of the unconventional monetary policy actions had a substantial signaling channel component where the market perceived the announcement of an unconventional monetary policy action as representing a lower future path for the short-term policy rate. We also find that the RBI’s forward guidance was more effective in the pandemic than it had been in the couple of years preceding the pandemic.

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Monetary Policy Announcements and Stock Returns: Some Further Evidence from India

Cited by 8 publications

References 42 publications

Stock Market Reforms and Stock Market Performance

Stock Market Reforms and Stock Market Performance

Export Performance of MSMEs in India: Is Credit Constraint an Invisible Gorilla?

Impact of RBI’s monetary policy announcements on government bond yields: evidence from the pandemic

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