IMPACT OF MACROECONOMIC INDICATORS ON NIFTY INDEX

The performance of stock indices, especially the Nifty Index, is closely linked with the macroeconomic indicators of the economy. This study examines the correlation between macroeconomic indicators and the Nifty Index. The findings highlight significant correlations, particularly those of interest rates, exchange rates, and unemployment rates with the Nifty 50 Index. Additionally, the study demonstrates the predictive power of macroeconomic variables in forecasting stock market movements, offering valuable insights for investors, policymakers, and financial analysts. The regression model, with an R-squared value of 0.948, indicates a high level of explanatory power. The study suggests that understanding macroeconomic trends can enhance investment strategies, inform policy decisions, and support corporate planning. Keywords: Nifty Index, Macroeconomic Indicators, Forecasting