Author(s): Sangmi MohiuDin, Hassan Mohd Mubasher
To examine the effect of macroeconomic variables on the stock price movement in Indian Stock Market, six variables of macro-economy (inflation, exchange rate, Industrial production, Money Supply, Gold price, interest rate) are used as independent variables. Sensex, Nifty and BSE 100 are indicated as dependent variable. The monthly time series data are gathered from RBI handbook over the period of April 2008 to June 2012. Multiple regression analysis is applied in this paper to construct a quantitative model showing the relationship between macroeconomics and stock price. The result of this paper indicates that significant relationship occurred between macroeconomics variables and stock price in India.