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Do cricket results affect the stock market?

Does Sachin wicket cause the drop in the Sensex?

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

Such a high co-relation is food for thought indeed!

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