2025, Vol. 6, Issue 2, Part O

The overarching goal is to help Indian investors better manage overseas risks and add to the existing body of knowledge. Company that can adapt to new circumstances. One indicator of India's economic strength is the country's stock market's integration with global stock markets. By analyzing the triggers and subsequent impacts of these occurrences. To predict how the Nifty50 would move in relation to the global market indexes, the variance decomposition approach is used. Because of its rapid economic development and improved access to international financial markets, India's stock market has been very unpredictable throughout the last several decades. The Indian economy faces several risks, despite the fact that integration has made things more flexible and maybe helpful. We call attention to three problems. For example, when the Indian economy is faltering, stock returns fall sharply, but they slowly recover when things improve. According to Report, factors like as FIls, market sentiment, and investor behavior are responsible for these reactions. We also have evidence indicating the Indian market is still somewhat isolated, even if it has become more connected to global markets. Not with standing limitations at the federal, state, or regional levels or maybe shocks that are sector-specific or global in scope? This study's findings highlight the significance of investors' and politicians' familiarity with the interrelated nature of the world's financial institutions. Knowing the impact and transmission of global shocks on India's stock market is crucial for achieving financial stability, making sound investment choices, and developing an effective risk management plan.