Journal of Contemporary Issues in Business and Government Vol. 27, No. 1, 2021 P-ISSN: 2204-1990; E-ISSN: 1323-6903 https://cibg.org.au/ 2185 Do Bulls and Bears Understand Exchange Rate Dynamics? Evidence from Global Scenario Nitin Kulshrestha 1 , Dr. Shalini Aggarwal 2 , Dr. Navjit Singh 3 1 Assistant Professor, Christ University, Delhi NCR, India 2 Associate Professor for Management, USB-MBA, Chandigarh University, Mohali, India 3 Associate Professor for Management, USB-MBA, Chandigarh University, Mohali, India Email: mymagictime@gmail.com, shaliniaggar@gmail.com Abstract: The motivation of the present study to investigate and understand the correlation of adjusted closing prices of forex and index (EUR/INR, GDP/INR, Nifty50, CNXIT) which is traded at National Stock Exchange, India. The empirical analysis of three years of data with the help of E-views software. After investigation, it can conclude there is a steady correlation ship among the group. CNXIT having a more robust relationship with Forex as compare to Nifty50. It shows a short-run equilibrium relationship variable but, long-run equilibrium among variables, but shows a very strong co-relation among all the research variable (EUR/INR, GDP/INR, Nifty50, CNXIT. Due to above support it determine the unidirectional price detection dynamics. The co-integration test allows high degree of relationships among variables. Keywords: Forex, Nifty50, Correlation, Equilibrium, Price 1. INTRODUCTION: Since after liberalization, the foreign exchange market in India has experienced marvellous growth. It comprises buyer, seller, market mediator, & the monetary authority of India. The forex, comes a long way in India by looking at market participants, & different financial instruments; beyond that RBI strive hard to adjust many focus areas & frame novel policies to Indian forex market more happening & efficient. The USD is considered a major currency pair because it represents all currency pair & the pairs which do not include USD are called cross currency pair or cross currency. As we know that all the markets move towards more integrating in a dynamic way in the present global economy, & forex plays a very strategic role for any country, because it represent faith of outside investor & write a growth story for a country.