Global dollar tightening, market liquidity, and business resilience: evidence from India’s NIFTY-50

Abstract This paper examines whether tighter global dollar conditions weaken firm-level market liquidity in India’s benchmark equity segment and whether that relationship varies with baseline structural fragility. We use a balanced firm-day panel of 50 NIFTY-50 firms covering 30 January 2018 to 31 December 2024. To capture the external tightening environment, we construct a Global Dollar Tightening (GDT) index from standardised daily changes in the US 10-year Treasury yield, the VIX, and the USD