EN
Macroeconomic Factors and the Indian Stock Market: Exploring Long and Short Run Relationships
Abstract
The rapid growth of Indian economy during the last two decades raises empirical questions regarding the fundamental connection between stock price and key macroeconomic indicators. This paper aims to examine long and short run relations between selected macroeconomic indicators and stock market returns with reference to India. This study employs monthly data from July 2001 to July 2015 since major stock market reforms viz., ban of Badla system, introduction of rolling settlement and introduction of stock derivatives, were all implemented in July 2001. With the help of co-integration and error correction model, the study reveals the presence of long run relation between the BSE Sensex and select macroeconomic indicators viz., Exchange Rate, Wholesale Price Index, T-bill rates and M3.
Keywords
Details
Primary Language
English
Subjects
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Journal Section
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Publication Date
May 1, 2016
Submission Date
May 1, 2016
Acceptance Date
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Published in Issue
Year 2016 Volume: 6 Number: 3
APA
Kotha, K. K., & Sahu, B. (2016). Macroeconomic Factors and the Indian Stock Market: Exploring Long and Short Run Relationships. International Journal of Economics and Financial Issues, 6(3), 1081-1091. https://izlik.org/JA73KK84KC
AMA
1.Kotha KK, Sahu B. Macroeconomic Factors and the Indian Stock Market: Exploring Long and Short Run Relationships. IJEFI. 2016;6(3):1081-1091. https://izlik.org/JA73KK84KC
Chicago
Kotha, Kiran Kumar, and Bhawna Sahu. 2016. “Macroeconomic Factors and the Indian Stock Market: Exploring Long and Short Run Relationships”. International Journal of Economics and Financial Issues 6 (3): 1081-91. https://izlik.org/JA73KK84KC.
EndNote
Kotha KK, Sahu B (May 1, 2016) Macroeconomic Factors and the Indian Stock Market: Exploring Long and Short Run Relationships. International Journal of Economics and Financial Issues 6 3 1081–1091.
IEEE
[1]K. K. Kotha and B. Sahu, “Macroeconomic Factors and the Indian Stock Market: Exploring Long and Short Run Relationships”, IJEFI, vol. 6, no. 3, pp. 1081–1091, May 2016, [Online]. Available: https://izlik.org/JA73KK84KC
ISNAD
Kotha, Kiran Kumar - Sahu, Bhawna. “Macroeconomic Factors and the Indian Stock Market: Exploring Long and Short Run Relationships”. International Journal of Economics and Financial Issues 6/3 (May 1, 2016): 1081-1091. https://izlik.org/JA73KK84KC.
JAMA
1.Kotha KK, Sahu B. Macroeconomic Factors and the Indian Stock Market: Exploring Long and Short Run Relationships. IJEFI. 2016;6:1081–1091.
MLA
Kotha, Kiran Kumar, and Bhawna Sahu. “Macroeconomic Factors and the Indian Stock Market: Exploring Long and Short Run Relationships”. International Journal of Economics and Financial Issues, vol. 6, no. 3, May 2016, pp. 1081-9, https://izlik.org/JA73KK84KC.
Vancouver
1.Kiran Kumar Kotha, Bhawna Sahu. Macroeconomic Factors and the Indian Stock Market: Exploring Long and Short Run Relationships. IJEFI [Internet]. 2016 May 1;6(3):1081-9. Available from: https://izlik.org/JA73KK84KC