Impact of Macroeconomic Variables on Stock Market -A Study Between India And America
European Journal of Molecular & Clinical Medicine,
2020, Volume 7, Issue 11, Pages 4469-4486
AbstractIn many nations, stock markets are now an important and inextricable part of the economy. It is among the metrics that demonstrates the importance of the stock market in a nation in assessing the wellbeing of the country's economy as well as having an effect on the success of the financial market. Overall macroeconomics plays an important role in building national economies. This study considers the selected macroeconomic variables and their impact on stock market of both the countries India and America and their interrelationships. To estimate the association, relationship, individual significant relationship and interrelationship correlation, regression, t-test and ANNOVA model have been taken into consideration. The duration of the study is from 2015 to 2019 on the basis of yearly data from World Bank. As per the analysis, it is found that Inflation rate and Interest rate are insignificantly affecting the BSE SENSEX but GDP and GDP PER CAPITA are statistically significant. Whereas DOW JHONES is not meaningly affected by all the macroeconomic variables as all are statistically insignificant. However, in case of individual relationship between macroeconomic variables and stock market of both the countries, all the macroeconomic variables are statistically significant.
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