Graph Theory for Computer Science
by Manikandan Rajagopal, Ramkumar Sivasakthivel, Joseph Varghese Kureethara, Niranjanamurthy M., Biswadip Basu Mallik
27Network Analysis of Indian Stock Market at the Onset of Ukraine–Russia War
Anindita Bhattacharjee1* and Jaya Mamta Prosad2
1Symbiosis Centre for Management Studies, Noida, Symbiosis International (Deemed University), Pune, India
2Fortune Institute of International Business, New Delhi, India
Abstract
Financial data exhibits complex dynamics. Interaction among various market variables give rise to interesting pattern over time and, thus, makes the market complex. Hence, it is very important to understand the temporal characteristics of the market behavior for policymaking. This chapter aims at exploring the complex relationship among sectoral indices in Indian stock market at the onset of Ukraine–Russia war by network analysis method. This also aims to analyze the cooperative dynamics of the market in the context of evolution of time-varying network. Ten sectors under CNX NIFTY 50 are considered here. Daily closing price of these sectors are treated as variables. The sample period spans from June 2021 to March 2022 to capture the market dynamics immediately before and after the official announcement of the war on 24 February 2022. We propose to build a correlation-based network among these sectors where the nodes represent the sectors and the edge among the nodes is the linkage between the sectors. Correlation among the variables change with time which indicates the change in the underlying dynamics of the variables. Thus, correlation-based network is a temporal network that ...
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