Remember, Correlation Isn’t Causation
Just because the Nifty and DJIA move in the same direction sometimes doesn’t mean one causes the other. It’s crucial to analyze the underlying factors driving each market’s movement before drawing conclusions.
Does Nifty Follow Dow Jones?
The Indian stock market, represented by the Nifty 50, and the American giant, the Dow Jones Industrial Average (DJIA), are often compared and contrasted. But one question frequently pops up: Does the Nifty follow the Dow Jones?
The answer, like most things in finance, isn’t a simple “yes” or “no.” It’s a tango of correlation, not causation.