Impact of Macroeconomic Factors on Indian Stock Market

Abstract

This study is on Impact of Macroeconomic factors on Indian stock market. The aim of the study is to analyze the relationship between selected macroeconomic factors and Indian stock market price. This study may also facilitate to the investors in buying and selling decisions of securities as in the study the effect of the selected macroeconomic variables on the stock market price returns is been analysed. This study may also be make investors capable to take better decision by viewing the relationship between the dependent (Sensex) and independent variables (Macroeconomic factors). The methodology is used for the study is descriptive and Pearson correlation is used to find the relationship between the dependent and independent variables. Data over the period of 1991 to 2017 is used for the study. The result shows that there is a positive relationship between the sensex and macroeconomic factors except avg. inflation and unemployment rate as they show negative relationship.