Macroeconomic Indicators and Volatility in Banking Sector

The dynamic relationship between macroeconomic factors in India and the stock returns of the NSE Nifty Bank index is examined in this study. The banking sector plays a preliminary role in monetary policy for economic stability which is sensitive to the macroeconomic fluctuations. This research employs time series data from January 2020 to December 2024, to analyse the Nifty Bank Index returns against select macroeconomic factors. The variables include the inflation rate, interest rates, exchange rates and GDP. The methodology uses econometric techniques such as Unit Root tests to check for stationarity, Ordinary Least Square regression model to check the positive negative effect. The empirical findings reveals that the NSE Nifty bank stock returns to macroeconomic highlights the economic policy. It emphasizes the need for adding these factors into the bank stock returns and offers values for investors to invest in the market.

Authors

Institutions

Publication Details

Journal
International Journal of Advanced Research in Science Communication and Technology
Published
2025-09-22
DOI
https://doi.org/10.48175/ijarsct-28975
Primary Topic
Monetary Policy and Economic Impact
Type
article
Field-Weighted Citation Impact
0.00
Controls
|||
ALL TIME
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
article

Macroeconomic Indicators and Volatility in Banking Sector

Maria Christine Nirmala, K. C. Anushri
International Journal of Advanced Research in Science Communication and Technology
Monetary Policy and Economic Impact
article

Macroeconomic Indicators and Volatility in Banking Sector

Maria Christine Nirmala, K. C. Anushri
article en

Abstract

The dynamic relationship between macroeconomic factors in India and the stock returns of the NSE Nifty Bank index is examined in this study. The banking sector plays a preliminary role in monetary policy for economic stability which is sensitive to the macroeconomic fluctuations. This research employs time series data from January 2020 to December 2024, to analyse the Nifty Bank Index returns against select macroeconomic factors. The variables include the inflation rate, interest rates, exchange rates and GDP. The methodology uses econometric techniques such as Unit Root tests to check for stationarity, Ordinary Least Square regression model to check the positive negative effect. The empirical findings reveals that the NSE Nifty bank stock returns to macroeconomic highlights the economic policy. It emphasizes the need for adding these factors into the bank stock returns and offers values for investors to invest in the market.

International Journal of Advanced Research in Science Communication and Technology
Bharathiar University (IN)
Openalex Percentile: Top 59%
Monetary Policy and Economic Impact
AI Navigator

Ask Laika to Summarize, Analyze, and Connect papers live on the map.

Summarize Papers & Methodologies

Extract key findings, datasets, and comparative methods across publications.

Benchmark Rankings & Visual Analytics

Rank top research institutions, authors, funders, topics, and journals by Field-Weighted Citation Impact (FWCI) and paper volume with instant charts.

Connect Distant Disciplines

Bridge topological clusters on the map to find hidden collaborative intersections.