Examining the nexus between cotton and kapas of MCX market on stock prices of textile industry in India using ARDL model-Reference-Cited by-同舟云学术

Examining the nexus between cotton and kapas of MCX market on stock prices of textile industry in India using ARDL model

Published:2024-06-28 Issue:03 Volume:75 Page:368-380
ISSN:1222-5347
Container-title:Industria Textila
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Author:

MEHER BHARAT KUMAR¹,ANAND ABHISHEK²,BIRAU RAMONA³,KUMAR SANTOSH⁴,BĂRBĂCIORU IULIANA CARMEN⁵,PALIU-POPA LUCIA³,FRANK DANIEL⁶

Affiliation:

1. PG Department of Commerce, Purnea University, Purnia, Bihar, 854301, India

2. PG Department of Economics, Purnea University, Purnia, Bihar, 854301, India

3. University Constantin Brancusi of Tg-Jiu, Faculty of Economic Science, Tg-Jiu, Romania

4. Department of Commerce, D. S. College, Katihar, Bihar, 854105, India

5. University Constantin Brancusi of Tg-Jiu, Faculty of Medical and Behaviour Sciences, Tg-Jiu, Romania

6. Department of Commerce, Manipal Academy of Higher Education, Manipal. Karnataka, India

Abstract

This research study makes efforts to find the correlation between the prices of commodities in MCX and the prices of stocks by considering the textile companies and allied commodities in the commodities market. The study examined whether the price of cotton and kapas in the commodities market i.e., Multi Commodity Exchange (MCX), might have an effect on the stock prices of textile companies in India using the ARDL Model. The secondary data related to cotton and kapas prices are downloaded from the MCX website. Similarly, the data related to the closing prices of stocks of India's top five textile companies based on market capitalization, are downloaded from the website of Kotak Securities. All the ARDL models for the short run are considered as too weak as the coefficient of determination and adjusted R-squared are too low.

Publisher

The National Research and Development Institute for Textiles and Leather