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Indian cricket team's 'poor performance affects stock market'

cricket Updated: Oct 06, 2010 12:16 IST

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Here's yet another reason why the Indian cricket team should keep the winning streak alive, particularly when legend Sachin Tendulkar is in the playing side -- it's poor performance can affect the country's stock market, says a new study, led by an Indian-origin economist.

With the Australian cricket team touring India, Dr Vinod Mishra and his colleague Prof Russell Smyth at Monash University have found that the "poor" performance of India, in one day matches mainly, can significantly impact on fortunes of the Indian stock market.

"While a win by the Indian cricket team has no statistically significant upward impact on stock market returns, a loss generates a significant downward movement in the stock market.

"India's main index, the CNX Nifty show that the Nifty Index was generally flat the day after a win, but the day following a loss the index dropped by an average of 0.231 per cent. The drop following a loss was more than seven times greater than the movement following a win," Prof Smyth said.

Furthermore, when Sachin Tendulker is playing in the losing side, the loss on the stock market could be 20 per cent more, say the economists.