• Sujyothi
• Dr. Suresh A S

The present study is an attempt to analyse the causal relationship between Nifty 50 and sectoral indices of National Stock Exchange (NSE) for the period 2013–2023. The adjusted closing prices was collected for a period of 11-years, starting from January 1, 2013 to December 31, 2023. The analysis is solely based on secondary data obtained from NSE. To critically examine this relation, the study uses various statistical techniques such as descriptive statistics, correlation analysis, and econometric tests such as Granger causality test and Augmented Dickey–Fuller test. The results of the unit root test indicate that the return series of all the selected indices are stationary. The study noticed a strong positive relationship between Nifty 50 and Sectoral indices returns for Nifty Auto index, Nifty Bank Index, and Nifty Financial Services Index, and weak positive relationship for Nifty Energy index, Nifty FMCG index, Nifty IT index, Nifty Media Index, Nifty Metal Index, Nifty Realty index and Nifty PSU Index. The granger casualty test demonstrates that Nifty Bank Indices and Nifty Financial services indices have a causal association with the Nifty, but Nify Auto index, Nifty Media index, Nifty Realty index, and Nifty IT do not demonstrate any causal association with Nifty.

Nifty, National Stock Exchange, Sectoral indices, Causality

"Analysing the Causal Relationship Between Nifty 50 and Sectoral Indices", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.11, Issue 5, page no.e256-e264, May-2024, Available :http://www.jetir.org/papers/JETIR2405432.pdf

"Analysing the Causal Relationship Between Nifty 50 and Sectoral Indices", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.11, Issue 5, page no. ppe256-e264, May-2024, Available at : http://www.jetir.org/papers/JETIR2405432.pdf