Indian stock markets hit for six when Indian cricketers lose ODIs

With the Australian cricket team touring India, investors on India's National Stock Exchange (NSE) have good reason to feel nervous with new research showing when India's cricket team lose one-day internationals, a decline is recorded in the stock market.

Research by economists Professor Russell Smyth and Dr Vinod Mishra at Monash University suggest the performance of the Indian cricket team in one-day matches can significantly impact the 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," Professor Russell Smyth, head of the department of economics said.

"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," Professor Smyth said.

Furthermore, when Sachin Tendulker, India's most popular cricketer, plays in a losing side, the loss on the stock market is almost 20 per cent more.

"In the 100 matches in which Tendulkar played and India lost, the average return the day after the match was 0.328 per cent, an 18 per cent higher drop compared to the average drop after losing a match," Professor Smyth said.