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@article{201372,
        author = {Dr. Parth Rashmikant Bhatt},
        title = {Interdependence and Cointegration Between Nifty 50 and Banking Sector Indices: Evidence from the 2025-2026 Shock Period},
        journal = {International Journal of Innovative Research in Technology},
        year = {2026},
        volume = {12},
        number = {12},
        pages = {3261-3272},
        issn = {2349-6002},
        url = {https://ijirt.org/article?manuscript=201372},
        abstract = {Between April 8, 2025, and April 8, 2026, when there were significant trade and geopolitical shocks, this paper examines the correlation between the Nifty 50 index and two banking sector indices, Private Bank and PSU Bank, their cointegration, and dependence. Using the EViews software, the analysis applies time-series econometric tests including; descriptive statistics, correlation analysis, the Augmented Dickey-Fuller (ADF) unit root test, the Johansen cointegration test and the Granger causality analysis. Research design is quantitative and empirical and the secondary data is used day by day. A lack of normality in the distribution and the occurrence of high values suggest volatility clustering, as well as leptokurtic behaviour, in all of the return series. The correlation results show a weak correlation to PSU Bank, but a strong correlation of the Nifty 50 and the Private Bank indexes. Private banking stocks have a disproportionate impact on market movements, according to Granger causality study, which shows a unidirectional causal link from Private Bank to Nifty 50. PSU bank indices, on the other hand, do not provide any substantial causal impact. Also, when an economy is experiencing uncertain economic times, the Josephsons cointegration test ensures that the indices are not connected to stable long-term relationships. Because even though short-run interactions are significant, long-run integration is disrupted by structural shocks such as trade disputes and geopolitical incidences, albeit the substantial policy implications of the work to policymakers, investors and portfolio diversification strategies.},
        keywords = {Financial market indexes (Nifty50), financial sector indices (FSIs), Granger Causality, Cointegration and geopolitical shocks.},
        month = {May},
        }