Global markets offer cheaper equity pricing for Indian firms, study finds.
The article examines different ways to calculate the cost of equity for Indian companies, comparing local and global models. They used data from hundreds of firms listed on the Bombay Stock Exchange. The study found that the cost of equity is lower in global markets than in domestic ones, supporting previous research. Both local and global models gave consistent results, but an international model showed mixed outcomes. Weekly data was found to be the most reliable for calculating equity for Indian firms.