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Impact of Selected Macroeconomic Indicators on S & P BSE SME IPO Index

Author

Listed:
  • Mubarak Rahman P.

    (Research Scholar, Department of Commerce, Pondicherry University, India.)

  • Kuhan K.

    (Research Scholar, Department of Commerce, Pondicherry University, India)

  • Dr. V. Kavida

    (Associate Professor, Department of Commerce, Pondicherry University, India)

Abstract

The prime objective of this research is to examine the impact of the selected macroeconomic variables on S&P BSE SME IPO index. Correlation, Multiple regression and Granger casualty tests have been used to estimate the relationship and impact. The variables selected for this study is average monthly closing price of S&P BSE SME IPO and macroeconomic indicators like; Index of Industrial production (IIP), Gross Domestic Product (GDP), Interest Rate (IR), Foreign Direct Investment (FDI), Inflation Rate (IF), Exchange Rate (ER), and Crude oil Price (CP). An average monthly data over a period of three years are taken, starting from January 2013 to December 2015. The result shows that, Interest rate and Inflation rate have a significant positive impact on stock market index. Whereas, Exchange rate shows a negative significant impact. Granger causality results reveals a unidirectional relationship between SME IPO Index and Crude Oil price, GDP, FDI and Interest rate.

Suggested Citation

  • Mubarak Rahman P. & Kuhan K. & Dr. V. Kavida, 2017. "Impact of Selected Macroeconomic Indicators on S & P BSE SME IPO Index," Indian Journal of Commerce and Management Studies, Educational Research Multimedia & Publications,India, vol. 8(1), pages 28-32, January.
    • Handle: RePEc:aii:ijcmss:v:08:y:2017:i:1:p:28-32
    DOI: 10.18843/ijcms/v8i1/04
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    References listed on IDEAS

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    1. Anthony Kyereboah-Coleman & Kwame F. Agyire-Tettey, 2008. "Impact of macroeconomic indicators on stock market performance: The case of the Ghana Stock Exchange," Journal of Risk Finance, Emerald Group Publishing, vol. 9(4), pages 365-378, August.
    2. Karam Pal & Ruhee Mittal, 2011. "Impact of macroeconomic indicators on Indian capital markets," Journal of Risk Finance, Emerald Group Publishing, vol. 12(2), pages 84-97, March.
    3. Husam Rjoub & Turgut Türsoy & Nil Günsel, 2009. "The effects of macroeconomic factors on stock returns: Istanbul Stock Market," Studies in Economics and Finance, Emerald Group Publishing Limited, vol. 26(1), pages 36-45, March.
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