Measuring Impact of Macro Economic Variable on Capital Market: Comparative Modelling Approach

Abstract

The study focussed in Asian country using the extensive data set on capital market index and macroeconomic variables in India from 1999 to 2018 we examined the impact of selected macroeconomic variable on Nifty 50. During the past twenty years, there occur lot many changes in Asia and so as in Indian stock market has observed many incidence changes due to various reasons in Indian economy. The market index indicates the share market as for the macro-economic variables GDP, Bank Rate, Inflation, Industrial Production Growth Rate, Fiscal Deficit, Exports, Imports and Trade balance was used. Linear regression test was carried out, and six models were developed in which linear, synthesised and log value of Nifty 50 and selected macro-economic variables were considered and the result and analysis showed that GDP and exports are the factors which have impact on the stock market index nifty 50