Parikalpana: KIIT Journal of Management

Open Access Open Access  Restricted Access Subscription Access

Macro Economic Factors and Share Price Behaviour:A Study on Selected Industries in India


Affiliations
1 NIST, Brahmapur, Odisha, India
2 PG Dept. of Commerce, Berhampur University, India
 

Share Market Investment has become popular in recent days due to its higher return comparing with other traditional form of investment. However, it is a fact that the market does not pay guaranteed return like in the traditional form of investment. The ups and downs in the return are the phenomena of a share market investment. The fluctuations in the share market are influenced by several set of factors relating to company, industry as well as economy. Hence, the investors should take the note of these factors while investing. The present study is an attempt to find out the relation as well as the effect of macroeconomic factors on the share price of selected industries. The result of the study disclosed that the macroeconomic variables are having significant influence on the share price.

Keywords

Share Price, Macroeconomic Factors, Regression Analysis.
User
Notifications
Font Size

  • Bhattacharya, B., Mukherjee, J., (2002): “The Nature of the Casual Relationship between Stock Market and Macroeconomic Aggregates in India: An Empirical Analysis”, Paper Presented in the 4th Annual Conference on Money and Finance, Mumbai, India.

  • Buyusalvarci, A., (2010): The Effect of Macroeconomic Variables on Stock Return: Evidence from Turkey, European Journal of Social Sciences, Vol.14, No.3, pp404-416.

  • Chakrabarti, R. (2001): ”FII Flows to India Nature and Causes” Money and Finance, 2, (7), 61-81.

  • Chen, N.F., Roll, R. and Ross. S.A. (1986): “Economic Forces and the Stock Market”, The Journal of Business, 59(3), 383-403.

  • Darrat, A.F. and Mukherjee, T. K. (1986): The Behaviour of Stock Market in a Developing Economy, Economics Letter,22 (2-3), 273-278.

  • Errunza, V. and Hogan, K. (1998): ”Macroeconomic Determinants of European Stock Market Volatility” European Financial Management, 4(3), 361-377.

  • Fama, E.F, (1981): “Stock Returns, Real Activity, Inflation and Money”, American Economic Review, 71(4), 545-565.

  • Gay, R.,D.(jr), (2008): Effect of micro economic variables on stock market returns for four emerging economics; Brazil, Russia, India and China, International Business & Economics Research Journal, 7(3). 1-8.

  • Gunsel, N. and Cukur, S., (2007): The Effects of Macroeconomic Factors on the London Stock Returns: A Sectoral Approach, International Research Journal of Finance and Economics, (10), 140-152.

  • Gupta, R. (2011): Understanding the Relationship of Domestic and International Factors with Stock Prices in India: An Application of ARCH, Academy of Accounting and Financial Studies Journal, April, Vol.15, Issue 2.

  • Hosseini, S.M., Ahmad, Z. and Lai, Y.W., (2011): The Role of Macroeconomic Variables on Stock Market Index in China and India, International Journal of Economics and Finance, November, 3(6), 233-243.

  • Hussainey, K. and Ngoc, L.K. (2009): The Impact of macroeconomic Indicators on Vietnamese Stock Prices, The Journal of Risk Finance, 10(4), 321-332.

  • Ibrahim, M., (1999): Macroeconomic Variables and Stock Prices in Malaysia: An Empirical Analysis, Asian Economic Journal, 13 (2), 219–231.

  • Inegbedion, H.E.,(2012): Macroeconomic Determinants of Stock Price Changes: Empirical Evidence from Nigeria, Indian Journal of Finance, 6(2), 19-23.

  • Kalra, R. (2012): Impact of Macroeconomic Variables on Indian Stock Market, The IUP Journal of Financial Risk Management, IX (1), 43-54.

  • Kumar SSS, (2006):”Role of Institutional Investors in Indian Stock Market”, International Journal of Management Practices and Contemporary Thoughts, 1(1) 76-80.

  • Mishra, A.K.(2004): Stock Market and Foreign Exchange Market in India. Are they Related?, South Asia Economic Journal, 5 (2), 209-232.

  • Mukhopadhyay, D. and N. Sakar, (2003). Stock returns and Macroeconomic Fundamentals in Model Specification Framework: Evidence from Indian Stock Market, Indian Statistical Institute, Economic Research Unit, ERU 2003-2005 Discussion Paper, pp1-28.

  • Panda, C. and Kamaiah, B., (2001): Monetary Policy, Expected Inflation, Real Activity and Stock Return in India: An Empirical Analysis, Asian-African Journal of Economics and Econometrics, 1,191-200

  • Pethe, A. and Karnik, A., (2000): “Do Indian Stock Markets Matter? Stock Market Indices and Macroeconomic Variables”, Economic and Political Weekly, 35 (5), 349-356.

  • Rahman, A.A., Sidek, A.Z.M., and Tafri, F.H., (2009): Macroeconomic Determinants of Malaysian Stock Market, African Journal of Business Management, 3 (3), 95-106.

  • Rao, K.C.S. and Jose, S. (1996): Relative Influence of Market Volatility, Economic Changes and Company Fundamentals on Equity Return in India: A Study, Finance India, X (1) 27-48.

  • Sen., S. (1996): “Role of Foreign Capital in India’s Security Market Boom”, Finance India, X (3), 573–584.

  • Sharma, G.D. and Mahendru, M. (2010): Impact of Macro-Economic Variables on Stock Prices in India, Global Journal of Management and Business Research, 10 (7), 19-26.

  • Sharma S. and Singh, B. (2007):”Macroeconomic Variables and Stock Index in India: An Empirical Analysis”, Artha Vijnana, XLIX (2) 103-120.

  • Singh, T., Mehta, S. and Varsha, M.S. (2011): Macroeconomic Factors and Stock Returns: Evidence from Taiwan, Journal of Economics and International Finance, April, Vol.2, No. 4, pp217-227.

  • Somoye, R.O.C., Akintoye, I.R. and Oseni, J.E. (2009): Determinants of Equity Prices in the Stock Market, International Research Journal of Finance and Economics, (30), 177-189.

  • Srivastava, A. (2010): Relevance of Macro Economic Factors for the Indian stock Market, Decision, 37 (3), 69-89.

  • Tripathy, N. P., (2011): Casual Relationship between Macro-Economic Indicator and Stock Market in India, Asian Journal of Finance & Accounting, 3(1), 208-226.

  • Trivedi, P. and Behera, S.R.(2012): Macroeconomic Fundamentals as Determinants of Equity Prices: An Empirical Analysis for India, The IUP Journal of Applied Finance,18 (3), 5-30.


Abstract Views: 511

PDF Views: 0




  • Macro Economic Factors and Share Price Behaviour:A Study on Selected Industries in India

Abstract Views: 511  |  PDF Views: 0

Authors

Pramath Nath Acharya
NIST, Brahmapur, Odisha, India
Rudra Prasanna Mahapatra
PG Dept. of Commerce, Berhampur University, India

Abstract


Share Market Investment has become popular in recent days due to its higher return comparing with other traditional form of investment. However, it is a fact that the market does not pay guaranteed return like in the traditional form of investment. The ups and downs in the return are the phenomena of a share market investment. The fluctuations in the share market are influenced by several set of factors relating to company, industry as well as economy. Hence, the investors should take the note of these factors while investing. The present study is an attempt to find out the relation as well as the effect of macroeconomic factors on the share price of selected industries. The result of the study disclosed that the macroeconomic variables are having significant influence on the share price.

Keywords


Share Price, Macroeconomic Factors, Regression Analysis.

References





DOI: https://doi.org/10.23862/kiit-parikalpana%2F2018%2Fv14%2Fi1%2F173249