alexa Impact of Macroeconomic Variables on Indian Stock Market
Business & Management

Business & Management

Journal of Stock & Forex Trading

Author(s): Rosy Kalra

Abstract Share this page

Stock market plays an important role in the economy as it helps in diversifying the investments. However, to perform this role, it must have significant relationship with the economy. Thus, the analysis of macroeconomic factors is essential to understand the behavior of stock market. This paper examines the relationship between selected macroeconomic variables like Cash Reserve Ratio (CRR), reverse repo rate, gold price, Wholesale Price Index (WPI), oil rate, inflation rate, Gross Domestic Product (GDP), and Sensex. The data is collected on a monthly basis for the time period January 2001 to December 2009. It is found with the help of correlation and regression analysis that forex rate, inflation rate and gold prices are the most significant variables that help in forming models for forecasting the Sensex, and thus a forecasting model is developed combining these variables. 

  • Subscription
This article was published in The IUP Journal of Financial Risk Management and referenced in Journal of Stock & Forex Trading

Relevant Expert PPTs

Relevant Speaker PPTs

Relevant Topics

Peer Reviewed Journals
Make the best use of Scientific Research and information from our 700 + peer reviewed, Open Access Journals
International Conferences 2017-18
Meet Inspiring Speakers and Experts at our 3000+ Global Annual Meetings

Contact Us

© 2008-2017 OMICS International - Open Access Publisher. Best viewed in Mozilla Firefox | Google Chrome | Above IE 7.0 version