An Empirical Study of Indian Stock Market and Its Influencing Variables

Abstract: This study examines the Indian stock market and the macroeconomic variables that affect its performance. The logistic regression is used to compare the monthly performance of the Indian stock market with fourteen years' data on macroeconomic factors. According to the secondary data analysis, as the India's economy and capital markets are growing rapidly, this study show that IIP numbers, interest rates, FDI and exchange rates influence the markets. The expert opinion differs slightly from the quantitative data. This study has important implications for developing countries like India. The author believes that following the study's suggestions would help investors to reduce stock market volatility and improve portfolio performance. Keywords: Macroeconomic Variables, India, Logistic Regression JEL Classification Number: C35, G11, G170