Impact of Economic Indicators on Stock Market Volatility in India

The performance of stock markets is closely connected to the overall economic situation and the stability of the financial system in a country. Several economic factors like inflation rate, interest rate, exchange rate, and gross domestic product (GDP) growth have a major impact on how investors feel and how stock prices change. This study looks at the connection between these key economic factors and the fluctuations in the stock market in India. For this research, a descriptive and analytical approach was used. The main data was gathered from 105 participants through a structured questionnaire that was sent out using Google Forms. The goal was to understand how investors see the effect of economic indicators on stock market trends. To analyze the information and check for any statistical connections, percentage analysis and chi-square testing were used. The results show that economic indicators strongly affect stock market fluctuations and how investors make decisions. Among the factors studied, interest rates and inflation were seen as the most important in causing changes in the market. The chi-square test also shows that there is a clear and important link between economic indicators and how investors view market volatility. This study adds to the existing knowledge about how financial markets work and gives useful information for investors, policy makers, and financial experts who want to understand the broader economic factors that influence stock market behavior.