Browsing by Author "R. K, Sudhamathi"

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    Impact of Macroeconomic Forces on Indian Stock Market
    (Asian Journal of Research in Business Economics and Management, 2019-04) R. K, Sudhamathi; M., Ganeswari
    Macroeconomic performance plays crucial role in emerging economies and acts as the reflection of the economic performance of the country. Economic growth in turn depends on well structured financial market, vice-versa well structured and stable financial market will also fuel the economic growth of the country. In this dependent scenario it is quite imperative to study the impact of macroeconomic forces on the Indian stock market to have deeper understanding about the influence of macroeconomic forces on stock market returns. In this research article an attempt has been made to study the impact of macroeconomic variables such as consumer price index, industrial production, money supply, oil prices, exchange rate and global stock prices reflected by MSCI index on broad Indian stock market index BSE SENSEX and various sectoral indices of BSE. The main objective of the study is to study the impact of macroeconomic variable on Indian stock market and to examine the long-run and short-run relationship of the chosen macroeconomic variables on the returns of the broad stock market index BSE SENSEX and various sectoral indices of BSE. The period of study is from April 2014 to July 2018. The major macroeconomic forces that significantly impacts most of the sectors of the Indian stock market are CPI, crude oil price, exchange rate and MSCI index. Macroeconomic variable namely IPI significantly influences production sectors like basic materials, consumer discretionary goods and services, metal, oil and gas, teck and utilities. Macroeconomic variable money supply significantly impacts high capital intensive sector and finance sector. The analysis also shows that there exist a long-run and as well as short-run relationship between Indian stock market and macroeconomic variables chosen for the study.
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    A Study on the Exchange Rate Dynamics and Its Impact on Stock Market Volatility with reference to Nifty
    (Asian Journal of Research in Social Sciences and Humanities, 2019-04) P. B., Saranya; R. K, Sudhamathi
    The stock market indices are perceived to be the barometers of the country’s capital markets and they are also used as a tool to understand the market movements. The volatility in the stock markets depends upon several factors such as new information arrival, macro-economic variables, global financial indicators, etc. The exchange rate fluctuations influences the stock markets. Understanding and predicting the exchange rate fluctuations helps us in predicting the movements of the stock markets and assist investors to make wise investment decisions. The study examines the exchange rate dynamics of Indian Rupees against US Dollars and its impact on the stock market index. The exchange rates and the Nifty 50 index values over period of 3 year ranging from October 2015 to September 2018 has been analysed. The INR against USD breached above Rs. 70 per USD in August, 2018 and currently at Rs. 72 per USD. The exchange rates of other countries also depreciated against USD. The study also examines the exchange rate dynamics of CNY, JPY and INR against USD since April, 2018.