IMPACT OF MACROECONOMIC FACTORS ON NIFTY 50 – A STUDY

This research explores how key macroeconomic variables-Gross Domestic Product (GDP), Consumer Price Index (CPI), and the INR/USD exchange rate-impact the Nifty 50 index over the period from May 2019 to May 2025.Using quarterly data, correlation and regression analysis were conducted to assess the strength and direction of these relationships.The study found that GDP had a strong and consistent positive correlation with the Nifty 50, CPI showed a moderately positive trend, and exchange rates displayed a weaker, though still relevant, influence.These insights are important for policymakers, investors, and financial analysts who seek to understand the underlying economic forces affecting India's capital markets.This research contributes to existing financial literature and provides a quantitative foundation for forecasting and investment decision-making.