Analysis of Impact of Gross Domestic Products (GDP) on Stock Market Movement in India”

Abstract

This paper covers the financial system with two main components GDP and Stock Exchange. It means these two variables one is studying (Independent) variable (GDP) and Stock Market Dependent Variable. The Researcher has collected Data from secondary sources like website and Stock Market because of the study based on secondary information available an online source. The Financial system is important to control the economy of any country, so every country has to focus on it. The Researcher has the main objective to know; to know the impact of GDP on the stock market as a macroeconomic variable, to find out the relationship between gross domestic products (GDP) and stock market movement in India, to know the impact of gross domestic products (GDP) on the stock market movement in India. The Researcher has used Statistical tools for testing hypotheses like Descriptive statistics, the Co-relation, and simple Regression analysis. Through this study, the researcher has concluded a strong relationship between GDP and SENSEX because the co-relation result is 0.965768, and the correlation between GDP and NIFTY 50 is 0.970837. The conclusion of the study on the basis result of co-relation, we can say that there is a strong relationship between GDP and the Stock Market Movement in India including based on the result of the regression, we can say that there is an impact of GDP on Stock Market Movement in India. This result shows that any change in the GDP is reflected in the stock market of India. On the basic finding of this study, we interpret that GDP as other macroeconomic variable impacts on the stock market of India. So it is a broader scope for the other researcher to carry forward study by using another macro as well as microeconomic factors.