A Study of the Impact of Selected Macroeconomic Variables on Indian Stock Market Volatility

Abstract

Stock Market is a platform where buying and selling of securities takes place. It helps newlinebusinesses to raise capital for expansion or diversification of their business. Stock Market newlinein India has shown considerable growth in the last two decades. There are many factors newlinewhich affect the movement of share prices in stock market. The purpose of this research newlinework is to study the impact of selected macroeconomic variables on Indian stock market newlinevolatility. There have been studies which have studied the impact of various newlinemacroeconomic factors on stock markets in various countries from time to time. However, newlinemajority of these studies have covered developed countries and very few studies have been newlinedone in the context of developing countries. This research work is an attempt to understand newlineand explain the relationship between selected macroeconomic variables on the volatility of newlineIndian stock market in recent times. The results of this research will help policy makers in newlineorder to formulate policies which will promote the growth of stock market in India. Apart newlinefrom that, other stakeholders including portfolio managers, fund managers and retail newlineinvestors can make use of the findings of this research work in order to formulate their newlinetrading and investment strategies. Moreover, this research work adds to the existing newlineliterature on the subject and will provide a base for academicians, researchers and scholars newlineto pursue similar research in other developing countries. newline