Money Market Volatility and Its Influence on Retail Sector Stock Performance - A Study on Indian Market
Amisha P. Urkude
Research Scholar
Department of Business Administration (MBA) SIPNA College of Engineering & Technology, Amravati amishaurkude22@gmail.com
Dr.M.D.Jadhav
Professor and Head MBA Department.
Sipna College of Engineering and Technology,
Amravati 444607
Amravati (MS.), India
manish_pari78@rediffmail.com
ABSTRACT: Money market volatility plays a critical role in influencing the dynamics of financial markets, particularly in emerging economies such as India. The retail sector, being highly dependent on consumer demand, credit availability, and interest rate movements, is extremely sensitive to fluctuations in the money market. This research paper examines the influence of money market volatility on the performance of retail sector stocks in India.
The study focuses on key money market variables such as short-term interest rates, liquidity conditions, and monetary policy measures, and evaluates their impact on retail stock returns, investor sentiment, and risk perception. A descriptive and analytical research design has been adopted using both primary and secondary data. Primary data was collected through a structured questionnaire administered to retail investors, while secondary data was sourced from RBI publications, NSE and BSE reports, and reputed national and international journals.
Statistical tools such as percentage analysis, correlation analysis, and regression analysis were employed for data interpretation. The findings reveal a significant relationship between money market volatility and retail sector stock performance, indicating that increased volatility adversely affects investor confidence and stock returns. The study concludes by offering practical suggestions for investors and policymakers to manage risks associated with money market fluctuations and enhance stability in the retail sector.
Keywords: Money Market Volatility, Retail Sector Stocks, Interest Rates, Monetary Policy, Investor Sentiment, Liquidity
