Impact of Macro – Economic Variables on Indian Stock Market- A Study of BSE Sectoral Indices

Authors: Dharmananda M, Dr. Anjali Ganesh

ABSTRACT

The movement of stock indices is highly sensitive to the changes in macro economic factors. Market indices are the yardstick against which the various securities of stock market are measured. Investors study these indices before investing their funds in stock market. These factors play a very significant role in determining the performance of the stock market. This paper tries to explore in what ways the macro variables of an economy can have an impact on the performance of the stock market. This paper tries to highlights on whether the investor needs to concentrate on the macro factors while investing in the stocks.

Keywords: Indices, Investment, Stocks