Journal Press India^®

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This study investigates the dynamic correlation between exchange rates and the stocks of selected Indian Information Technology (IT) companies using the DCC-GARCH model. The study spans from 2008 to 2022. The results indicate a significant and time-varying correlation between exchange rates and IT stock performance, with firms showing varying sensitivities across currencies. This highlights the critical role of exchange rate fluctuations in shaping the stock market dynamics within the IT sector, influencing investment strategies. The findings suggest that investors should incorporate exchange rate considerations into their portfolio decisions. The study contributes to the growing literature on the interdependence between exchange rates and stock markets, specifically within the context of the Indian IT sector.

Keywords

Exchange rates; Indian IT stocks; DCC-GARCH; Dynamic correlation

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