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1Hiteksha Upadhyay is working as Assistant Professor – Finance, Faculty of Management, GLS University – Ahmedabad. He can be reached at hiteksha@nribm.org /hiteksha.joshi@glsuniversity.ac.in
Some possible challenges to growth include persisting energy price level and minimization of adverse price hike impact on other industries. Price fluctuation in oil and energy has always been an area of serious concern. For any investor and entrepreneur, a flourishing and healthy stock market has been considered very important for national economic growth by channeling capital and determining the association between economic indicators and industry. Oil price makes a significant impact on selected sectors, specifically in oil-importing countries. The present research paper attempts to study the short run and the long-run relationship among oil price, automobile industry, and Energy sector. For conducting this research, the researcher has used Energy Index, as it represents pioneer players of the energy sector and Auto Index, which represents major players of the Automobile Industry as a sample. To examine the association between oil price, Auto index, and Energy index daily closing value of all the time series is taken from 1st January 2014 to 31st December 2018. Standard econometric tests such as unit root test employed to test whether data is stationary or not. The Granger Causality test used for the demining association of the short run, and to accomplish the objective of long-run relation, Johansen cointegration test has been used in this research paper.
Econometric analysis, oil price, Auto Index, Energy Index,
JEL Classification Code: C32, F15, Q43
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