Impact of Economic Indicators on Stock Market Performance in India
DOI:
https://doi.org/10.64137/31079423/IJEBMR-V2I1P105Keywords:
Economic Indicators, Stock Market Performance, Nifty 50, GDP, Inflation, Interest Rate, Foreign Exchange Rate, NSE IndiaAbstract
This study examines the relationship between key economic indicators and stock market performance in the context of the National Stock Exchange (NSE) of India. Using quarterly data over a five-year period, the research investigates the impact of Gross Domestic Product (GDP) growth, inflation rate, interest rate, and foreign exchange rate movements on the Nifty 50 index. Employing econometric tools such as correlation analysis, regression modeling, and time-series techniques, the study explores both short-run and long-run dynamics between macroeconomic variables and market performance. The findings reveal that GDP growth and foreign exchange rates significantly influence stock returns, while inflation and interest rates exhibit a mixed and often lagged effect. These results offer valuable insights for investors, policymakers, and market analysts seeking to understand the interplay between macroeconomic fundamentals and capital market movements in India.
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