International Journals

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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.
Relationship between FDI and BSE Sensex – An Empirical Study
(Asian Journal of Research in Social Sciences and Humanities, 2019-04) R. K., Sudhamathi; M, Ganeswari
Foreign direct investment plays an important role in the economic development of both developing as well as developed nations. Due to foreign direct investment, a large number of countries are integrated and pursuing their international operations. Fast growing economies like China, Korea and Singapore etc have registered incredible growth with the functioning of FDI. FDI provides an access to the foreign capital as well as helps to provide the most modernize technology available, various tools of innovations and other complimentary skills. At present, with regard to FDI inflow, the government plays a vital role in drafting and executing various policies. The various foreign countries are attracted to ensure their investment in India with the FDI policies framed on the part of the government which acts as a stimulus. The amount of the inflow of FDI will account to the growth in GDP simultaneously the Indian stock market will also be affected due to the inflow of FDI. This paper will attempt to study the impact of foreign direct investment on the Indian stock market. Various statistical tools will be applied in order to analyze the study. The tools used for the study are Descriptive statistics, ADF, Granger Causality and Johansen Co-integration test. In order to study the impact, BSE Sensex is selected to represent the Indian stock market. Data of 3 years 2016-2018 suggests that amount of FDI has a direct impact on stock market i.e., BSE Sensex. The study concludes that flow of FDI in India determines the trend of Indian Stock Market.