Authors: S. Kirithiga; S. Thiyagarajan; G. Naresh
Addresses: Department of Commerce, School of Management, Pondicherry University, Puducherry, 605-014, India ' Department of International Business, School of Management, Pondicherry University, Puducherry, 605-014, India ' Department of Accounting and Finance, Charlton College of Business, University of Massachusetts Dartmouth, 285, Old Westport Road, North Dartmouth, MA 027472300, USA
Abstract: Globalisation policy expanded a nation's trade beyond its boundaries leading to imports and exports of goods or services across countries. Large number of economies are frequently divulged to macroeconomic adjustment in response to the commodity price movements. Therefore, when commodities are traded across nations, the factors that affect increased their prices and with it the risk as well (Mahalakshmi et al., 2012b). To safeguard the commodity prices from the influence of the macroeconomic indicators that directly affect the price of the commodity market it has to imbibe the macroeconomic information. The commodity futures market serves as a benchmark for determining the commodity prices. Better pricing for commodities can be done only when the commodity market is efficient by transmitting information effectively. Indian commodity market was developed only after the introduction of nationwide exchanges in 2002. Thus, queries may arise on its efficiency regarding its reactions to macroeconomic variables. Hence this paper intends to examine the impact of macroeconomic variables on commodity futures in India.
Keywords: commodity futures; commodity price; macroeconomic indicators; wholesale price index; WPI; interest rate; exchange rate.
International Journal of Business Innovation and Research, 2019 Vol.18 No.3, pp.279 - 292
Received: 08 Aug 2017
Accepted: 19 Nov 2017
Published online: 28 Feb 2019 *