Authors:
Deepa Paul and K. V. Eldhose
Deepa Paul, Assistant Professor, Department of Commerce,Sri. C. Achutha Menon Government College, Thrissur, Kerala, Email: deepapaul003@gmail.comK.V. Eldhose, Assistant Professor, Department of Commerce,Sri. C. Achutha Menon Government College, Thrissur, Kerala
In this study, regression analysis was used to investigate the relationship between the Indian capital market and important macroeconomic variables like the Consumer Price Index (CPI), Crude Oil (CO), Gold Price (GP), and Index of Industrial Production (IIP) of the Indian economy. The study's proxy for the Indian capital market was the BSE Sensex. Correlation matrix and Multivariate Regression Model derived using the Standard Ordinary Least Square (OLS) methods are used to determine the association. All tests are performed using monthly data, and the time frame under consideration is from 2018 to 2022. According to correlation analysis and derived regression coefficients, the price of crude oil significantly influences Indian stock prices in the positive direction.
Keywords: Macroeconomic Variables, Stock prices, ADF, OLS
Received on: 27/01/2023, Revised on: 05/01/2023, Accepted on: 09/02/2023, Published on: 05/05/2023
SMS Journal of Business Management