IDEAS home Printed from https://ideas.repec.org/a/ods/journl/v4y2015i1p11-15.html
   My bibliography  Save this article

Macroeconomic Factors and Performance of Indian Stock Market

Author

Listed:
  • Jagan Gaur

    (Grant Thornton, India)

  • Mihir Dash

    (Alliance University, India)

Abstract

With the global financial crisis, the Indian economy is witnessing a downturn, with an overall weakening of its macroeconomic indicators. In particular, performance of the economy as a whole and the performance of the stock market are expected to be closely inter-linked; fundamental analysis proposes that knowledge of economic conditions and macroeconomic factors would enable investors to anticipate/predict stock market performance. This study examines the impact of selected macroeconomic factors on stock market performance in India using the Granger causality test. The results of the study showed that the only macroeconomic factor which had a significant causal effect on the performance of Indian stock markets was movements in net FIIs.

Suggested Citation

  • Jagan Gaur & Mihir Dash, 2015. "Macroeconomic Factors and Performance of Indian Stock Market," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 4(1), pages 11-15.
    • Handle: RePEc:ods:journl:v:4:y:2015:i:1:p:11-15
    as

    Download full text from publisher

    File URL: http://www.jami.org.ua/Papers/JAMI_4_1_11-15.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Abeyratna Gunasekarage & Anirut Pisedtasalasai & David M. Power, 2004. "Macroeconomic Influence on the Stock Market: Evidence from an Emerging Market in South Asia," Journal of Emerging Market Finance, Institute for Financial Management and Research, vol. 3(3), pages 285-304, December.
    2. Mihir Dash, 2014. "Granger Causality and the Capital Asset Pricing Model," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 3(2), pages 68-73.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Dash, M., 2019. "A Study on Commodity Market Behaviour, Price Discovery and its Factors," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 8(3), pages 125-134, September.
    2. Mihir Dash, 2017. "A Study of Granger Causality in Latin American Stock Markets," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 6(2), pages 82-88, May.
    3. G.V. Satya Sekhar, 2016. "Ten Myths of Performance Evaluation of Mutual Funds: a Snapshot View," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 5(1), pages 59-65, February.
    4. Mishra, Brajesh & Ghosh, Sajal & Kanjilal, Kakali, 2023. "Policies to reduce India's crude oil import dependence amidst clean energy transition," Energy Policy, Elsevier, vol. 183(C).
    5. Yurii Hrinchenko, 2020. "The Case of the Aviation Industry Development under the Conditions of an Open Economy: A Theoretical Context," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 9(1), pages 28-41, March.
    6. Yu Zhang & Xiaosong Zheng, 2016. "A Study of Herd Behavior Based on the Chinese Stock Market," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 5(2), pages 131-135, May.
    7. Mihir Dash & Silky Sonthalia Sundarka, 2015. "Testing the Stationarity of Beta for Automotive and Auto-Ancillary Sector Stocks in Indian Stock Market," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 4(2), pages 76-81.
    8. Nibu Raj Abraham, 2015. "Underpricing in the Malaysian IPO Market During 2009-2014," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 4(4), pages 194-200, November.
    9. T. Mohanasundaram & P. Karthikeyan, 2017. "Decisive Economic and Stock Market Indicators on Foreign Institutional Investments: Evidence from India," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 6(1), pages 43-57, February.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Molefhi, Koketso, 2021. "The Impact of Macroeconomic Variables on Capital Market Development in Botswana’s Economy," African Journal of Economic Review, African Journal of Economic Review, vol. 9(2), April.
    2. Rashid Ameer, 2007. "What Moves the Primary Stock and Bond Markets? Influence of Macroeconomic Factors on Bond and Equity Issues in Malaysia and Korea," Asian Academy of Management Journal of Accounting and Finance (AAMJAF), Penerbit Universiti Sains Malaysia, vol. 3(1), pages 93-116.
    3. Ditimi Amassoma & O. Adeleke, 2018. "Testing for the Causality between Interest Rate and Stock Market Performance in Nigeria," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 3, pages 109-124.
    4. Nawal Hussein Abbas Elhussein & Elzibeer Fath Elrahman Hamed Warag, 2020. "Economic Forces and the Stock Market Performance in Developing Countries: Evidence From Sudan," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 11(4), pages 130-143, July.
    5. Hossain, Md. Sajib & Hossain, Md. Amzad & Amin, Shabnaz, 2016. "An Empirical Analysis of the Relationship between Monetary Policy Stance and Stock Price in Bangladesh," Bangladesh Development Studies, Bangladesh Institute of Development Studies (BIDS), vol. 39(1-2), pages 27-57, March-Jun.
    6. Muda, Iskandar, 2017. "Erception of capital, profit and dividends affect the stock purchase intention in Indonesia public company," MPRA Paper 83588, University Library of Munich, Germany.
    7. Khan, Mashrur Mustaque & Yousuf, Ahmed Sadek, 2013. "Macroeconomic Forces and Stock Prices:Evidence from the Bangladesh Stock Market," MPRA Paper 46528, University Library of Munich, Germany.
    8. Md. Abu HASAN, 2017. "Efficiency and Volatility of the Stock Market in Bangladesh: A Macroeconometric Analysis," Turkish Economic Review, KSP Journals, vol. 4(2), pages 239-249, June.
    9. Papadamou, Stephanos & Sidiropoulos, Moïse & Spyromitros, Eleftherios, 2017. "Interest rate dynamic effect on stock returns and central bank transparency: Evidence from emerging markets," Research in International Business and Finance, Elsevier, vol. 39(PB), pages 951-962.
    10. Devarakonda, S. & Chittineni, J., 2019. "Does Insurance Promote Economic Growth? Evidence from BRICS Countries," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 8(3), pages 135-146, September.
    11. Oliver Ike Inyiama & Michael Chidiebere Ekwe, 2014. "Macroeconomic Variables and Capital Market Performance: Evidence from Nigeria," International Journal of Financial Economics, Research Academy of Social Sciences, vol. 2(3), pages 129-141.
    12. Satish Kumar & Vinodh Madhavan & Riya Sureka, 2020. "The Journal of Emerging Market Finance: A Bibliometric Overview (2002–2019)," Journal of Emerging Market Finance, Institute for Financial Management and Research, vol. 19(3), pages 326-352, December.
    13. Mihir Dash, 2015. "A Study of Granger Causality in Asian Stock Markets," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 4(3), pages 145-150.
    14. Mihir Dash, 2017. "“Reverse-Engineering” the Market Portfolio," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 6(3), pages 151-156, September.
    15. Mitra Lal Devkota, 2018. "The Dynamic Causality Between Stock Prices And Macroeconomic Variables: Evidence From Nepal," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 6, pages 5-14, December.
    16. Guneratne Wickremasinghe, 2011. "The Sri Lankan stock market and the macroeconomy: an empirical investigation," Studies in Economics and Finance, Emerald Group Publishing Limited, vol. 28(3), pages 179-195, August.
    17. NEIFAR, MALIKA & HarzAllah, AMIRA, 2020. "Can Canadian Stock market provide complete hedge against Inflation ?," MPRA Paper 99093, University Library of Munich, Germany.
    18. Adel Shakeeb Mohsen, 2015. "Effects of Trade Openness And Economic Growth on the Private Sector Investment in Syria," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 4(3), pages 168-176.
    19. Muda, Iskandar, 2017. "Perception of capital, profit and dividends affect the stock purchase intention in Indonesia public company," MPRA Paper 83658, University Library of Munich, Germany.
    20. Pallegedara, Asankha, 2012. "Dynamic relationships between stock market performance and short term interest rate Empirical evidence from Sri Lanka," MPRA Paper 40773, University Library of Munich, Germany.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ods:journl:v:4:y:2015:i:1:p:11-15. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Anatoliy G. Goncharuk (email available below). General contact details of provider: https://edirc.repec.org/data/dmonaua.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.