The Role of Commodities and Institutional Investors in Shaping Stock Market Trends

Authors

  • amitabh joshi

    Prestige Institute of Management & Research, Indore, India

  • Sumit Zokarkar

    Prestige Institute of Management & Research, Indore, India

  • Ramona Birau

    University of Craiova, "Eugeniu Carada" Doctoral School of Economic Sciences, Craiova, Romania

  • Virgil Popescu

    University of Craiova, Faculty of Economics and Business Administration, Craiova, Romania

  • Stefan Margaritescu

    University of Craiova, "Eugeniu Carada" Doctoral School of Economic Sciences, Craiova, Romania

How to Cite

joshi, amitabh, Zokarkar, S., Birau, R., Popescu, V. ., & Margaritescu, S. (2025). The Role of Commodities and Institutional Investors in Shaping Stock Market Trends. International Journal of Accounting and Economics Studies, 12(4), 301-311. https://doi.org/10.14419/x7fqz462

Received date: June 30, 2025

Accepted date: August 9, 2025

Published date: August 14, 2025

DOI:

https://doi.org/10.14419/x7fqz462

Keywords:

Variance decomposition, Impulse Response Function, Financialization of Commodities, Volatility, VAR, ARMA

Abstract

In the complex landscape of financial markets, understanding the relationship between commodities and institutional investments is crucial for shaping effective investment strategies. Commodities—such as crude oil, gold, silver, and other primary goods—play a pivotal role not only as essential inputs in manufacturing but also as reliable hedges against inflation, especially during periods of economic uncertainty. Their movements often echo across broader financial markets, influencing investor sentiment and stock market behavior. This research paper explores the interplay between key commodities (crude oil, gold, silver) and institutional investments (FII and DII) to assess their collective impact on market volatility, specifically in the context of the NSE. Drawing on data from 2012 to 2024, the study employs BVAR, VAR, and ARMA models to analyze patterns and forecast volatility. The findings reveal strong interdependence among these variables, with shifts in commodity prices significantly influencing the NSE index. These insights highlight the intricate yet critical connections between commodity markets, institutional flows, and stock market performance. The paper also delves into the strategic implications of these dynamics for investors and policymakers alike.

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How to Cite

joshi, amitabh, Zokarkar, S., Birau, R., Popescu, V. ., & Margaritescu, S. (2025). The Role of Commodities and Institutional Investors in Shaping Stock Market Trends. International Journal of Accounting and Economics Studies, 12(4), 301-311. https://doi.org/10.14419/x7fqz462

Received date: June 30, 2025

Accepted date: August 9, 2025

Published date: August 14, 2025