1Professor, Department of Commerce Gulbarga University, Kalaburgi, Karnataka, India.
2Research Scholar, Department of Management, Gulbarga University, Kalaburgi, Karnataka, India.
Online published on 4 October, 2017.
Stock market performance is said to be affected by host of reasons. However, the present paper attempts to study the impact of select macroeconomic variables on BSE-Sensex for the period from 2011 to 2015. Monthly data relating to seven macroeconomic variables viz. Index of Industrial Production, Wholesale Price Index, Exchange Rate, Money Supply Foreign Exchange Reserves, Call Money Rate and Crude Oil Prices have been collected from various sources. Statistical tools such as correlation and regression analysis have been used to study the impact of selected variables on BSE-Sensex. The regression output reveals that, the adjusted r square value for the regression model is 0.832, which indicates 83.2 percent of variation in BSE-Sensex is explained by seven macroeconomic variables under study.
The study further reveals that Index of Industrial Production, Wholesale Price index, and Exchange rate are found to have positive impact on BSE –Sensex. The study finally concludes that Index of Industrial production and Wholesale Price Index have very strong positive impact on BSE-Sensex.
Call Money Rate, Index of Industrial production, Stock returns, Wholesale Price Index
