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IMDR’s Journal of Management Development & Research 2023-24

study. Before acting on this analysis, its crucial to take in account your personal risk and

investment objectives.
In this study, we are excluding any events like the Russia- Ukraine War, the Israel-Hamas

war, the Fed Commentary event, and other similar events that have an impact on the markets
very much. These events create volatility that might have altered the result of the study.

Literature Review

In this section, we will go through research papers that have been published relating to this
topic. The literature review covers topics on derivative trading in emerging markets, a

relationship of various global markets, spot nifty, and SGX nifty.

A study conducted in their research article ‘Intraday Price Discovery between Spot and
Futures Markets of NIFTY 50: An Empirical Study during the Times of COVID-19’ has

established a corelation between the nifty futures and its spot index of the market. They have

studied using 1-minute time frame from January 1, 2020, to December 31, 2020, period just
before covid crash. Therefore, the data can be a little deformed from the original movement

and time frame taken is small. In this article, the conclusion is that futures lead the spot
market. (Mohammed Arshad Khan, 2022)

A study conducted by S Sundararajan and SA Balasubramanian in their paper ‘International

linkages of emerging market index futures, under the closure of underlying spot market–

evidence from Indian Nifty futures’ reveals that “the SGX Nifty futures market is
cointegrated with the US DJIA market. The US DJIA stock index strongly influences the

price discovery of SGX Nifty futures and past innovations in the US markets impact the
current volatility of SGX Nifty futures.” (Sundararajan, 2023)

In ‘Price Discoveries and Volatility Spillovers in S&P CNX Nifty Future and its Underlying
Index CNX Nifty’ research paper by Madhusudan Karmakar study of “price discovery of the

S&P CNX Nifty and the Nifty Futures. The study concludes that the nifty futures are more
informational than the underlying stock market.” (Karmakar, 2009) The study also focuses on

the impact of the volatility of one market on another market and the transfer of the volatility
from one to another. Further mentioned that it can be used to improve their portfolios and

help in hedging and speculating the futures.

‘Dynamic Linkages between Singapore and NSE listed NIFTY Futures and NIFTY Spot

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