The Effect of Macroeconomic Variables on Stock Prices in Emerging Stock Market: Empirical Evidence from India

Dr.V.Ramanujam; Mrs. L.Leela

Volume : IV, Issue : VI, June - 2014

The Effect of Macroeconomic Variables on Stock Prices in Emerging Stock Market: Empirical Evidence from India

Dr. V. Ramanujam, Mrs. L. Leela

Abstract :

This paper analyzes long term relationship between CNXNIFTY and macroeconomic variables, vis–s–vis, change in exchange rate, index of industrial production and gross domestic product. The multiple regression equation model (Galton, 1877) in order to investigate the relationship among these factors. The period of the study is January 2004 to June 2013. Results reveal that gross domestic product and exchange rate highly affect the stock prices