RT Journal Article SR Electronic T1 Are Commodity and Stock Markets Independent of Each Other? A Case Study in India JF The Journal of Alternative Investments FD Institutional Investor Journals SP 85 OP 99 DO 10.3905/JAI.2009.11.3.085 VO 11 IS 3 A1 Y. V Reddy A1 A. Sebastin YR 2008 UL https://pm-research.com/content/11/3/85.abstract AB The temporal relationship between the commodities market and the stock market has a lot of implications for not only the participants of the markets but also for the policy makers, the producers of the commodities, and, in the case of developing nations, the economy as a whole. This relationship may be studied using various methods and by identifying the lead-lag relationship between the values of representative indices of the markets. The history of the organized commodity derivatives market in India dates back to the 19th century with the establishment of the Cotton Trade Association, where cotton futures contracts were traded in 1875, barely a decade after trading in commodity derivatives started in Chicago. In this article, the dynamics of such information transfer among the commodities spot, commodities derivatives, and stock markets in India are studied, using the information theoretic concept of entropy, which captures non-linear dynamic relationships as well. TOPICS: Commodities, security analysis and valuation, emerging, financial crises and financial market history