Logo
Munich Personal RePEc Archive

What drives the stock markets ? evidence from India

Fadzil, Anas and Masih, Mansur (2018): What drives the stock markets ? evidence from India.

[img]
Preview
PDF
MPRA_paper_109248.pdf

Download (343kB) | Preview

Abstract

This study wants to investigate what drives the stock markets. India was taken as a case study. The standard time series techniques were used. The macroeconomic variables used were industrial production index, wholesale price index and exchange rate. The results demonstrate that the stock markets and macroeconomic variables are cointegrated suggesting the existence of a long-run equilibrium relationship between stock markets and macroeconomic variables. The findings further tend to indicate that stock markets are driven mainly by the WPI, which represents Inflation followed by the exchange rate. Therefore, the policy makers should focus on the inflation rate and exchange rate to stabilize the stock markets.

Atom RSS 1.0 RSS 2.0

Contact us: mpra@ub.uni-muenchen.de

This repository has been built using EPrints software.

MPRA is a RePEc service hosted by Logo of the University Library LMU Munich.