A study of impact of inflation on national stock index

One of the vital challenges for India to become super economy in the world would be to control Inflation and maintain bullish sentiments in economy of the nation. Stock market being major barometer of the economy, this paper examines the impact of inflation bug on the economy barometer-Stock Market Index. Paper uses time series data to analyze the impact of Inflation on NSE Nifty using Regression analysis. The result shows that inflation is positively correlated with stock market index during time period 1995 – 2015.