Impact of Macroeconomic Variables on Indian Stock Market

International Journal of Economics and Management Studies

© 2017 by SSRG - IJEMS Journal

Volume 4 Issue 5

Year of Publication : 2017

Authors : Ms.Aanchal

10.14445/23939125/IJEMS-V4I5P114

How to Cite?

Ms.Aanchal, "Impact of Macroeconomic Variables on Indian Stock Market," SSRG International Journal of Economics and Management Studies, vol. 4,  no. 5, pp. 77-82, 2017. Crossref, https://doi.org/10.14445/23939125/IJEMS-V4I5P114

Abstract:

The present study investigated the impact of macroeconomic variables on Indian Stock Market to test that whether or not a growth in macroeconomic variables lead to growth in stock market with respect to India. For the purpose of the study, five macroeconomic variables are chosen namely GDP, Inflation, Exports, Imports and Investment and market indices of CNX Nifty 50 is taken as a measure for stock market performance. The study uses the data for eleven years starting from 2004 to 2015. The Data is analyzed using Augmented Dicky Fuller Test for testing the Unit Root of the data then further Correlation and Granger Causality Test are applied with the help of Eviews7 in order to find the relationship between the variables. And the empirical results of the study shows that all of the variables are having a unit root,i.e. there is no cause and effect relationship between Indian stock market and the five variables studied, and lastly, it is found that there exists a positive correlation between Indian stock market and the five variables studied.

Keywords:

Macroeconomic variables; Augmented Dicky Fuller Test, Correlation, Granger-causality test; unit-root test; EViews7; CNX Nifty 50.

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