Causal Influence of Macroeconomics Factors Shock on Indian Stock Market: Evidence from BSE Index | A

The spillover of BSE stock yields by the macroeconomic variable regime was studied in this research paper. For the period from 1-01-2010 to 31.12.2019, the analysis selected sample macroeconomic indicators such as FII, IFT, M3, Development Index and WPI from the RBI website and from www.bseindia.com. Statistical instruments such as Descriptive statistics, Correlation, Granger causality test, and VECM were used in the research. The research paper found that the selected macroeconomic variables were normally partially distributed and the risk during the study period was high rather than return-related.The VECM found that in an analysis, the movement of BSE Sensex variables was related to the distance of the previous time from the long-run equilibrium performance. BSE Sensex returns were not substantially caused by this explicit short-run relationship between the selected series during the study period and also by the selected macroeconomic variables. This study indicated that these macroeconomic variables should be taken into account by the investor group of manufacturing industries before developing the investment plan and the findings would also benefit policymakers.

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