*Coordinator, University Minority Cell, Devi Ahilya Vishwavidyalaya
**Junior Research Fellow, UGC; School of Commerce, Devi Ahilya Vishwavidylaya
***Junior Research Fellow, UGC; School of Economics, Devi Ahilya Vishwavidylaya
Online published on 16 April, 2014.
The present paper attempts to investigate the long term relationship between performance of National Stock Exchange's CNX NIFTY & various macroeconomic variables vis-à-vis exchange rate, gold prices & LIBOR. The study also seeks to establish whether fluctuations in the stock market are influenced by changes in these variables. For this purpose, monthly statistical data for USD, LIBOR, Gold price & NIFTY was used covering the period from April 2003 to March 2013. In order to examine the relationship among these factors Multiple Regression equation model (Galton, 1877) has been employed. The results so obtained reveal high correlation among the variables and suggests that all the external factors used under the study i.e. USD, LIBOR & Gold price significantly influence the performance of NIFTY.
Exchange rate, Gold price, Libor, Nifty, Regression analysis
