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GUINEA-BISSAU: Embalo may seek to destabilise PAIGC
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DOI: 10.1108/OXAN-ES284992
ISSN: 2633-304X
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Geographic
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Mangesh Tayde and S.V.D. Nageswara Rao
Purpose – The aggregate investment by foreign institutional investors (FIIs) in the Indian stock market is significant compared to that by domestic institutions and individual…
Abstract
Purpose – The aggregate investment by foreign institutional investors (FIIs) in the Indian stock market is significant compared to that by domestic institutions and individual (retail) investors. The question of whether FIIs exhibit herding and positive feedback trading while investing in the Indian stock markets has not been examined so far. This study is an attempt to fill the gap and contribute to the existing evidence on foreign portfolio investment in India.
Methodology/approach – We have analyzed the daily data on purchases and sales of securities by FIIs sourced from the Securities and Exchange Board of India (SEBI), and the Bombay Stock Exchange (BSE). We have adopted the approach of Lakonishok et al. (1992), and Wermers (1999) to examine herding and positive feedback trading by foreign investors.
Findings – Our results suggest that FIIs exhibit herding and positive feedback trading during different phases of the stock market. This observed behavior is prominent in but not restricted to large cap stocks as they enjoy better liquidity.
Social implication – The herding and positive feedback trading by FIIs is a cause for concern for government of India, capital market regulator (SEBI), and the country's central bank (RBI) as it adversely affects stock prices and volatility. They are required to formulate and implement a suitable policy response given their objective of protecting the interests of small investors in the market. They may also have to monitor the purchases and sales of equities by FIIs in general and of better performing large cap stocks in particular.
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PALESTINIANS: Regional shifts could destabilise Gaza
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DOI: 10.1108/OXAN-ES221821
ISSN: 2633-304X
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Geographic
Topical
EUROPE: Corruption could destabilise Eastern states
SLOVAKIA: Main coalition party could be destabilised
NORTH KOREA: COVID-19 could destabilise North Korea
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DOI: 10.1108/OXAN-ES251263
ISSN: 2633-304X
Keywords
Geographic
Topical
Arunava Bandyopadhyay, Souvik Bhowmik and Prabina Rajib
Guar Gum (GG) is used in Shale oil exploration. Excessive price increase in the Guar futures market had a spillover impact on Guar spot prices and affected Guar export from India…
Abstract
Purpose
Guar Gum (GG) is used in Shale oil exploration. Excessive price increase in the Guar futures market had a spillover impact on Guar spot prices and affected Guar export from India as Shale oil producers started exploring alternate sources. In this paper, the role of excessive speculation in the futures market, and its adverse impact on the guar-based agri-business ecosystem have been empirically explored.
Design/methodology/approach
Volatility spillover dynamics between WTI crude oil and Guar futures have been explored using bivariate-Granger Causality, BEKK–GARCH models with Wavelet multi-resolution analysis. The wavelet-based models capture the multi-scale features of mean and volatility spillover to identify the effect of heterogenous investment behavior in the time and frequency domain.
Findings
The results provide evidence that excessive speculation in futures markets increases spot market volatility. The results also suggest that the excess presence of short-term investors can destabilize the futures market.
Research limitations/implications
The purpose of the commodity futures market is to support price discovery and risk management. However, speculative practices can destabilize these purposes leading to the failure of the business ecosystem.
Originality/value
The novelty of this paper is twofold. First, it explores the economic linkages between the spot and futures market and tests whether the presence of heterogeneous traders affects the economic linkages. Second, it models the impact of short-term speculative investment on the destabilization of the spot market.
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TUNISIA: Political games risk destabilising upheaval
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DOI: 10.1108/OXAN-ES253946
ISSN: 2633-304X
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Topical
MONTENEGRO: Unrest could destabilise Djukanovic
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DOI: 10.1108/OXAN-ES206195
ISSN: 2633-304X
Keywords
Geographic
Topical
PHILIPPINES: New foreign policy may be destabilising