International Journal for Recent Development in Science and Technology

The stock market is a platform where investors allocate their capital in hopes of earning returns.However, stock markets are influenced by various micro and macroeconomic variables.This study focuses on the impact of specific macroeconomic variables-namely, the exchange rate, GDP, and the Index of Industrial Production (IIP)-on the Indian stock market, represented by the Nifty 50 index.This research is exploratory in nature and utilizes secondary data for analysis.The study employs correlation and regression analysis tools to examine the relationships between the selected macroeconomic variables and the Nifty 50 index.The findings reveal that the exchange rate and GDP are more positively correlated with the Nifty 50 index, whereas the IIP shows a weaker correlation.Furthermore, the study concludes that these macroeconomic variables significantly impact the Indian stock market.Based on these findings, it is recommended that investors consider these macroeconomic factors when making investment decisions, as they play a crucial role in influencing stock market performance.