Macroeconomic Variables impact on Stock Prices in a BRIC Stock Markets: An Empirical Analysis
Krishna Reddy Chittedi*
Assistant Professor, Department of Economics, Central University of Tamil Nadu, Tamil Nadu, India
- *Corresponding Author:
- Krishna Reddy Chittedi
Department of Economics
Central University of Tamil Nadu
Tamil Nadu, India
Tel: 04366 220 311
E-mail: [email protected]
Received Date: April 15, 2015; Accepted Date: May 23, 2015; Published Date: May 30, 2015
Citation: Chittedi KR (2015) Macroeconomic Variables impact on Stock Prices in a BRIC Stock Markets: An Empirical Analysis. J Stock Forex Trad 4:153. doi: 10.4172/2168-9458.1000153
Copyright: © 2015 Chittedi KR. This is an open-access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.
The study investigates the nature of the causal relationships between stock prices and the key macro economic variables in BRIC countries. The empirical evidence shows that long-run and short-run relationship exists between macro economic variables and stock prices, but this relationship was not consistent for all of the BRIC countries. The policy implication of the above is that the BRIC stock markets are not responsive to changes in a majority of macroeconomic factors in spite of the sizable proportion of stock market capitalization as a share of the country’s GDP.