Abstract:
Stock markets today are getting more and more com plex with passing every dawn. From the outcry set up under a banyan tree to com puter aided algorithm trades fired in a split of a second we have come a long way since the evolution of trading on stock exchanges. The study tries to examine the cross border linkages and im pact among three global regions namely the United States of America represented by the equity indices of Dow Jones industrial average and the S&P 500 index, the European region represented by the CAC 40 Index, the DAX, FTSE 100 and Asia Pacific region represented by Hang Seng Index, Kospi Index, Nikkei Index and the Straits time index have on the movement of Nifty (India). The cross border relationship among different economies have assumed significant importance given the variability and volatility in returns that one equity market can cause on another mainly influenced due to various fundamentals factor variations that a nation is prone to and can have catastrophic effects on multiple nations especially the emerging economies.
