Interlinking the Shariah Compliant Stocks in India: An Analysis Using Granger Causality

Abstract

With the growth of the Shariah-compliant stocks in India, the opportunities are also increasing. The investors need to know how they can predict the future of the stocks by studying a smaller number of stocks. This paper deals with the link between different Shariah-compliant stocks available in India. A research was done on S&P BSE 500 Shariah, Nifty Shariah 25, Nifty 50 Shariah and NIFTY 500 Shariah. The study revealed the interdependence of the shares. It helped locate the function as well as the driver of the stock.