Do cricket results affect the stock market?

Does Sachin wicket cause the drop in the Sensex?

There is a huge disadvantage of being a MBA student majoring in Marketing. You are surrounded by guys who are Finance majors & they use terms like ‘debt restructuring’ & ‘debt-equity swaps’. They hold themselves in high regard & you feel incompetent in their presence. Just the other day, a similar discussion was taking place so I listened in.

The discussion was regarding the stock market. The discussion was that most of India’s stock market capitalization is through FII investment. That India’s investors had little or no power to affect the stock market. I, for one, was not ready to believe this. Now it is one thing that people didn’t buy stocks but the fact that people don’t have any buying power, is not correct.

So, I decided to carry out my own research. For this, I had to see what influenced the minds of the Indian aam aadmi. As soon as I began pondering, I was hit with two obvious answers, movies & cricket. So, I set out trying to find trends in the Nifty Fifty index related to cricket’s major happenings. This movement shouldn’t be reflected in the INR vs USD index & that would mean that Indian investors have some sort of a say in the Indian share market.

I was amazed at the results; almost every time any major sporting event happened, the stock market responded. There are various unorthodox factors that dictate how the stock market behaves – Skirt-length indicator, Boston-snow indicator, Lipstick indicator, the infamous Big-Mac indicator, Harvard-MBA indicator, Aspirin-count indicator & many more. But this was big news!

Here are the mind blowing results:

Time Period	Sporting Event	Nifty Reaction
September 2007	India Win T20 World Cup	Nifty rises 1800 points
January 2008	India lose 4 match Test Series to Australia	Nifty falls from 6100 to 4700
March 2008	India win U-19 World Cup &First IPL held successfully	Nifty gains 680 points
August 2008	China hosts successful Olympics	Nifty falls from 5200 to 2600
November 2008	India best Australia in 4 match Test Series & India clean sweep England (5-0)	Nifty rises 500 points
February 2009	India beat Sri Lanka	Nifty up 200 points
March 2009	Sri Lankan team attacked by masked gunmen in Lahore	Nifty falls to 2596, a five year low
April 2009	India beat New Zealand	Nifty up 2200 points
September 2009	India win tri-series against New Zealand & Sri Lanka	Nifty up 250 points
November 2009	India lose to Australia	Nifty falls by 500 points
February 2010	India beat South Africa & become World Number One in ODIs	Nifty rises by 400 points
June 2010	India win Asia Cup	Nifty rising, already bullish trend existing
October 2010	India beat Australia in Australia & India clean sweep Kiwis	Nifty reaches all-time high of 6300
January 2011	India lose to South Africa	Nifty falls 800 points
November 2011	Yuvraj diagnosed with Lung Cancer	Nifty falls 800 points
April 2011	India win World Cup	Nifty up 500 points
July-September 2011	India clean swept in England Test Series (0-4), lose a T20 & 3 ODIs	Nifty falls 1200 points
October 2011	India avenge England in India	Nifty rises 700 points
December 2011	Australia thrash India in Australia & India out in group stages of Asia Cup	Nifty falls 800 points
July 2012	India beat Sri Lanka	Nifty rises 400 points
September 2012	India beat New Zealand	Nifty up 200 points
March 2013	India thrash Australia in first 2 Tests of 3 Test Series	Nifty rises 300 points