Air pollution and stock returns: Evidence from nse and bse of India

Abstract

Air pollution issue has become an important environmental problem in India. This paper proposes to examine the influence of Delhi Air Pollution on the two Indian stock indices, using Descriptive Statistics, Unit Root, and OLS regression. The analysis of the study found that Delhi Air Pollution did create a statistically significant effect on Nifty. This is the first study of this type to look into the effects of air quality issue on stock market indices in India.