Can India’s love for cricket move stock markets?
It’s widely acknowledged that cricket is something of a religion in India but could it be a market-mover too?
According to research by two Australian economists, India’s performance in one-day cricket matches can have a significant impact on the fortunes of the country’s stock market, the Indian Express reports.
Moreover, the researchers concluded that a win — expected by the millions of die-hard fans — has no impact on market returns but a loss “generates a significant downward movement in the stock market.”
And, if the pressure on the team to carry the hopes of 1.2 billion people on their shoulders every time they take the field wasn’t enough, research reportedly proves that if Sachin Tendulkar, India’s shining star and recently-crowned ICC Player of the Year, is playing when the team loses, the stock market loss is almost 20 percent more.
Now that’s real pressure.
It’s not the first time that academics have claimed a link between economics and sport. In February, a U.S. stock market advisory firm claimed that the elation after Super Bowl weekend invariably results in a stock market bounce.
Indians have always claimed that cricket is more than just a game. Perhaps they’re right.