The second main reason for understanding impact of volatility shock transmission is to know how international portfolio will be affected. International financial portfolios have to be maintained in the proper manner and no risks to such portfolios would be entertained as investors would stand to lose much in such uncertainty. They have to prepare for risks. Risk management considers changes in stock market, and news announcements are undeniably an important influencing factor. In this context, it becomes necessary to study how volatility shocks are created because of the news impact. Opportunities are created for risk analysts. Once the risk analyst is able to understand how volatility is transmitted in the market, they can understand the systematic transmission and impact factors (Cakan et al., 2015). Then based on how the scheduled news transmission or surprise news transmissions worked, they would be able to present trading strategies to their customers. Profitable trading strategies are preferred by people when they work with stock analysts (Donders and Vorst, 1996; Ederington and Lee, 1996). The third reason presented by Jiang et al. (2010) is that such analysis of volatility spillovers and news announcements will throw light on the fundamentals of the situation and the volatility contagion. A volatility contagion and its definition differs across research works but it has been observed that was some consensus. Contagion is understood as a transmission of shocks in an unanticipated manner. Sometimes normal spillover effects exist and at times interdependencies in the transmission of shock because of integrated markets will also exist in parallel. In the aftermath of a news effect, the contagion is differentiated from normal issues because it is not a normal interdependency. Therefore, according to Jiang et al. (2010) it would be easy to identify and segregate the contagion effects when studies are conducted on understanding the transmissions. The final reason to study spillover effects and their relation to macroeconomic news announcements is because of how it informs market efficiency.