Impact of Macroeconomic Variables on Performance of Nifty in Indian Stock Market


  • Anita Sahoo
  • Samson Moharana
  • Manoranjan Dash
  • Kamalakanta Muduli


The economic stability of a country is being measured by different macroeconomic variables and these reflect the economic condition of a country which in turn affects the industry scenario as well which affects the company activity. The Indian stock market plays a very vital role in the Indian Economy and it helps in the investment diversification. The macroeconomic factors are the measure indicators in the stock market movement and it is necessary to understand the impact of the macroeconomic variables. Seven macroeconomic independent variables are considered in this study are Import, Export,  Net Fiscal Deficit (Government), Interest Rate (Prime Lending Rate), Revenue Receipt(Government), Gross Domestic Product(GDP),  and Money Supply. Nifty is taken as the dependent variable. The data was collected from the RBI website over the period 2001 to 2018. Multiple Regression analysis is applied in the study to show the relationship, between macroeconomic variables and the Nifty. The study indicates significant relationship exists between the macroeconomic variable and the Nifty in India