Impact of Macro Economic Variables on the Stock Price Index. An Empirical Study on Indian Stock Market after Post Liberalization Period

      Аннотация: This book examines the impact of Macro economic variable such as: Foreign Institutional Investment (FII),Economic Growth(Index of industrial production (IIP) as a proxy),Money supply (M3),Exchange Rate (E), Rate of Interest (RI) and Inflation on stock price index in India after the post liberalization period.The data sets have been considered from April,1993 to June,2012 on a monthly basis. All the required information for the study has been retrieved from the Hand book of Statistics on Indian Economy published by Reserve Bank of India (RBI), various issues of RBI and SEBI (Security and Exchange Board of India) bulletins. The Johansen’s vector error correction model (VECM) has been employed to examine the objectives of the study. The study reveals that foreign institutional investment has positive impact on stock price index in India. The exchange rate and interest rate also influencing the fluctuation of the Stock Price but adversely.

Ключевые слова: Macro Economic Variables, Stock Price Index