Cointegration Influence of Macroeconomic Indicators on Stock Market Index in India

• DOI: 10.11648/j.ajtab.20150101.11
• Publication Date: 2015-05-09
• Authors: Amalendu Bhunia; Soumya Sarathi Ga...
• Keywords: Unit root test; Johansen test; Credence

Purpose of the Study: The present paper investigates how stock market index in India is practically being shocked by two commodity indicators, GDP growth rate and exchange rates. Background: Financial theory empirical studies confirm that one paramount indicators changes macroeconomic movement that’s why last twenty three years reason mounting credence those genuine movements habitually shock on price indices India. Methodology: study based secondary data obtained from RBI database, BSE database Index Mundi for period between 1991 2013 with 23 observations using ADF unit root test Johansen cointegration test. Results: results illustrate there significant long-term unwavering relationships exist. Findings: Indian very depending upon international crude oil price, gold rates growth.