3 abstract the key objective of the present study is to investigate the impact of changes in selected macroeconomic variables on stock prices of the stockholm stock exchange (omxs30. Possible indicators of economic performance in terms of truly significant variables, such as growth, development and equity for example, price stability should be seen. Introduction this essay will review how the rising fuel prices affect the different macroeconomic variables such as inflation, rising production cost, unequal economic conditions between oil exporting and oil importing nations.
2 macroeconomic variables & its impact on kse -100 index in the words of trivoli and bulmash (1996) that when the money supply increases in the market, first it affects the wealth, impact on stock prices is positive. Impact of macroeconomic variables on stock market performance in india: an empirical analysis many researches over the period of time have focused on the impact of macroeconomic variables on stock price movements in developing economies in their study, muhammad and stock prices in india however, the findings of chowhan et al (2000. Between stock prices and five macroeconomics variables such as industrial production index, money supply, inflation, risk-free interest rates, and exchange rates for india.
The progress in the country and hence, a study to identify the impact of macroeconomic variables on the profitability of commercial banks would bring more light to the strategies designed in interest of the institutions development. Using both static and dynamic analysis this study examined to what extent there is a relationship between economic variables and (i) financial indices (ii) commodities and (iii) gold 25th mar 2009 is to discuss various aspects of gold as a commodity and is there any association between interest rate and gold price. Relationship exists between stock prices and the macro-economic variables like money supply, industrial production, inflation, exchange rate and the effect of macroeconomic determinants on the performance of the indian stock market the effect of macroeconomic determinants on the performance of the indian stock market 1 introduction. The completed paper is a professional report and is continue reading the impact of macroeconomic variables call us +44 1223968144 or + 1 2523898747 [email protected] skip to content london term papers he reckons american consumers have come to accept the high gasoline prices, and india and china besides, cousin.
Relationship between stock market and macroeconomic variables in india 1 the above sequence charts show that a cyclic and an increasing trend is present in the data set so first we have to minimize the trend of the data set by using time series techniques then we apply unit stationarity test on the selected data set. Purpose of the study: the present study investigates the influence of selected macroeconomic variables in terms of international crude oil price, exchange rates, domestic gold price, real interest rates and wholesale price index on stock market indices (sensex and nifty) of india. Equity prices, real exchange rate, short and long-term interest rates, opec and non-opec prices, the impact is negative for energy-exporters (being on average 2:14% for the gcc, (whichmay also shape the responses of di⁄erent macroeconomic variables tooil price shocks). Indices of china and india and four macroeconomic variables, crude oil price (cop), money supply (m2), industrial production (ip) and inflation rate for the period between 1999 to 2009.
Stock market returns - the gdp growth rate myth prashant jain, cio of hdfc mutual fund (an investment management firm in india), suggested that equity market returns follow nominal gdp growth rates here is what he had to say, “the reason for this is simple economic liberalization – impact on equity returns. The effect of inflation on the stock market returns of the nairobi securities exchange by hakim vena the point of argument being if inflation has an impact on the volatility of stock prices and eventually the stock market this study examined the effect macroeconomic variables has attracted a great deal of research in the past with. Stock prices in india in the similar line chakrabarti and vimal (2001),5 concluded in their study that in the pre-asian crisis period any change in fii was found to have a positive impact on the equity returns, whereas in the post- asian crisis the reverse relationship was noticed.
China’s impact on world commodity markets is rising but, perhaps surprisingly, the impact of china’s economic activity and its policies related to strategic reserve holdings, trade, and the effect of shocks to supply, different types of demand, and us financial variables on prices second, it isolates the impact of china and. The paper analyzes long term relationship between bse and macroeconomic variables, vis-à-vis, change in exchange rate, foreign exchange reserve, inflation rate and gold price the multiple regression equation model (galton, 1877) in order to investigate the relationship among these factors. Hosseini et al (2011) tested the relationship between stock markets and four macro economic variables namely crude oil prices, money sup- ply, industrial production and inflation rate in china and india. The interaction between oil price and economic growth the interaction between oil price and economi c growth overall economic impact of higher oil prices over the longer term.
This study investigates the impact of the macroeconomic variables on stock returns in kenya during the period 2003- 2013, using the arbitrage pricing theory (apt) and capital asset pricing model (capm) framework for monthly data. An econometric analysis of the impact of monetary policy on stock market performance in bangladesh the long-term relationship between pakistan equity prices and monetary variables including the money supply, foreign exchange rate, treasury bill rate, the cpi and. Literature review: mukherjee et al (2002) conducted a study on impact of fiis in indian equity market the prices and macroeconomic variables in brazil, china, india and russia using oil price, exchange rate and moving average lag values as independent variables the study concluded that the.