期刊名称：IMPACT : International Journal of Research in Business Management
印刷版ISSN：2347-4572
电子版ISSN：2321-886X
出版年度：2014
期号：2303
页码：81-92
出版社：IMPACT Journals
摘要：This paper tends to convey the relationship between macroeconomic variables and Indian stock market. The Pearson’s correlation and multivariate stepwise regression is applied to understand the impact of macroeconomic indicators on the performance of stock market. Granger’s causality test is applied for the dynamic causal relationship among the variables. The explained variables in the study includes average monthly closing price of BSE 100 and CNX 100 while the explanatory variables are Index of Industrial Production (IIP), Wholesale Price Index (WPI), Money Supply (M3), Interest Rates (IR), Trade Deficit (TD), Foreign Institutional Investment (FII), Exchange rate (ER), Crude Oil Price (CP) and Gold Price (GP). The data used in the study is in the monthly frequency and period of the study includes from January 2011 to December 2012. The empirical results exhibit significant impact of macroeconomic variables on Indian stock market. The Indian Stock market improves with the increase in the inflow of foreign investment. Thus foreign capital is value addition to the market as it has significantly positive impact on stock market. The gold prices are used as best alternative for investment which hampers the stock prices of share market.
