Impact of Market Capitalization to GDP, Debt to GDP, Annual Turnover, PCI & Inflation on NEPSE Index: A Case of Nepal

Abstract : This study examines the impact of market capitalization to GDP ratio, annual turnover, inflation, Debt to GDP ratio & Per Capita Income on NEPSE Index. NEPSE Index is selected dependent variable. The selected independent variables are market capitalization to GDP ratio, annual turnover, inflation, Debt-GDP ratio, and per capita income. The study is based on secondary data with 114 observations for the study period from 2005/06 to 2023/24. The data were collected from annual report of Nepal Rastra Bank and Ministry of Finance and Nepal Stock Exchange. The correlation coefficients and regression models are estimated to test the significance and importance of market capitalization to GDP ratio, annual turnover, inflation, Debt- GDP ratio & Per capita income on NEPSE Index.