Performance Analysis Of Select Crypto Currencies And Stock Index In India - A Study

Abstract

This paper examines the potential relationship between specific cryptocurrencies such as Bitcoin (BTC), Ripple (XRP), and Cardano (ADA) with the Indian stock market index such as SENSEX and NIFTY. Additionally, it investigates the risks associated with these cryptocurrencies in relation to SENSEX and the NSE value in India. t-Test: Two-Sample Assuming Equal Variances and a Multiple Correlation coefficient were applied to analyze the  type of investment risks associated with these cryptocurrencies in relation to SENSEX and the NSE value in India. To determine whether there is any correlation between select cryptocurrencies in rupee with SENSEX and NIFTY in India from the financial year 2018-19 to 2022-2023, i.e., 5 years. The study found that there is a significant difference between changing the values of Bitcoin (BTC), Ripple (XRP), and Cardano (ADA) with SENSEX and NIFTY value in India, and there is a positive correlation between Bitcoin (BTC), Ripple (XRP), and Cardano (ADA) with SENSEX and NSE value in India. From the present study it is suggested that investors who are cautious of the severe volatility of cryptocurrencies choose the stock market, i.e., SENSEX or NIFTY, for investment because its value is theoretically expected to be more stable than cryptocurrencies.