Impact of Selected Macroeconomic Variables on Indian Stock Market Index

Abstract

Undoubtedly, stock market is very important to the global economic. It provides a channel that can move the funds from people who lack productive investment opportunities to people who have them. Therefore, stock market played a pivotal role in improving the economic growth (Demirguc-Kunt & Levine 1996). India’s economy has been one of the stars of global economies (Economywatch, 2008), as it is among the fastest growing and fourth largest economy in terms of purchasing power parity in the world. The capital investment boom in the country drives the current growth phase of the Indian economy. Presently, a large number of global players are analyzing carefully the movements of stock markets in India. Therefore, at this point, an understanding of macroeconomic variables that affect Indian stock markets may be useful for policy makers, traders, investors and all other stakeholders.