IDEAS home Printed from https://ideas.repec.org/a/jge/journl/523.html
   My bibliography  Save this article

The Effect of Macroeconomic Factors on Indian Share Prices: A Sectoral Approach

Author

Listed:
  • Guntur Anjana Raju
  • Harip Khanapuri

Abstract

The influence of macroeconomic factors on stock prices has attracted immense attention in recent years. The subject is being considered significant in both academic research and practical investment analysis. It is a common knowledge that fundamental analysts try to identify the trend in several macroeconomic variables and accordingly its effect on stock returns. The success of ‘buy and hold’ strategy adopted by these investors who focuses on ‘intrinsic value’ of assets is assumed to depend largely on future movements in various macroeconomic variables that directly or indirectly affect a firm’s business operations and thereby its stock returns. Considering the two significant sectors of Indian economy viz. manufacturing and financial services sectors, we address the following issues: (A) Does the long-run relationship exists between macroeconomic variables and stock prices in manufacturing and financial services sectors in India? (B) Is there any significant difference between macroeconomic factors affecting stock returns in manufacturing sector and those in financial services sector?

Suggested Citation

  • Guntur Anjana Raju & Harip Khanapuri, 2009. "The Effect of Macroeconomic Factors on Indian Share Prices: A Sectoral Approach," Journal of Global Economy, Research Centre for Social Sciences,Mumbai, India, vol. 5(2), pages 125-134, June.
  • Handle: RePEc:jge:journl:523
    as

    Download full text from publisher

    File URL: http://www.rcssindia.org/jge
    Download Restriction: Only to subscribers

    File URL: http://www.rcssindia.org/jge
    Download Restriction: Not freely downloadable

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    Indian Economy; Financial Economics; Stock markets; Macro Variables;

    JEL classification:

    • G17 - Financial Economics - - General Financial Markets - - - Financial Forecasting and Simulation
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

    Statistics

    Access and download statistics

    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:jge:journl:523. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dr J K Sachdeva). General contact details of provider: http://www.rcssindia.org .

    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.

    We have no references for this item. You can help adding them by using 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.