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Original research

A Study of Relationship between Stock Market and Bond Market in the Indian Context

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Purpose: The paper revisits the correlation between the stock and bond market. Theoretically, these two asset classes should have a negative correlation. However, there are times when the negative correlation does not hold, and the paper attempts to identify the macro/micro factors leading to this anomaly. Methodology: The study would use secondary data from various websites (SEBI, NSE, BSE, FIMMDA) for the past two decades and employ various statistical tests - such as Pearson’s Correlation, Spearman’s Correlation and Regression Analysis to ascertain the extent of correlation between equities market and bond market in India. Findings: The paper would validate the negative correlation and test the relationship during times of financial crisis - like the 2008 global melt-down and the ongoing COVID-19 pandemic. Implications: The study would help develop a better understanding of equities and bond markets’ performance in different economic conditions - especially during black swan events like the present global pandemic. Originality: The Study would also focus on events/situations when the traditionally accepted relationship between equity market and bond market transforms.


Nisarg Amin, Sunit Joshi, Pankaj Sharma. A Study of Relationship between Stock Market and Bond Market in the Indian Context. Cardiometry; Issue 24; November 2022; p.909-917; DOI: 10.18137/cardiometry.2022.24.909917; Available from:


Equities,  Bonds,  Correlation,  Markets,  Global Pandemic
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