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
pdf
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.

References:

1) Annual report of Kanara District Credit Co-Operative Bank, Kumata Bank in the year 2010-11 to 2014-2015.
2) Sirsi Urban Souhardha Sahakari Bank Ltd. in the year 2010-11 to 2014-2015.
3) Akshay Co-Operative Credit Society Bank in the year 2010-11 to 2014-2015.
4) The Bhatkal Co-Operative Bank, Bhatkal in the year 2010-11 to 2014-2015.
5) "About Us". Co-operative Retail Trading Group. 2007. Archived from the original on 2008-10-23.
6) European Association of Co-operative Banks (April 2009), "European Co-operative Banks in Financial and Economic Turmoil", Co-operatives in a world in Crisis (Contribution of EACB to the Experts Group meeting) United Nations – New York.
7) Heiko, Hesse; and Martin,Cihak (2007), “Co-operative Banks and Financial
8) Stability”, IMF Working Paper (Jan.), Washington, DC Hundekar (1995), Productivity in Banks, Printwell Publishers, Jaipur.
9) "History". Lothian Co-op. Archived from the original on 2007- 06-08.
10) David Thompson. "Cooperative Principles Then and Now". Cooperative Grocer (July–Aug 1994). National Cooperative Grocers Association, Minneapolis.