The Impact of Macroeconomic Indicators on Stock Market Returns: A Sectoral Study

The Impact of Macroeconomic Indicators on Stock Market Returns: A Sectoral Study

Mr. Shubham Kaima

Student, School of Management and Commerce, Vikrant University, Gwalior

Mr. Harshit ojha

Student, School of Management and Commerce, Vikrant University, Gwalior

Mr. Nitin Agarwal

Assistant Professor, School of Management and Commerce, Vikrant University, Gwalior

Dr. Rahul Kushwah

Associate Professor & Head, School of Management and Commerce, Vikrant University, Gwalior

Abstract

This research explores the impact of macroeconomic factors on stock market returns of various sectors in India. With a dataset from 2010 to 2024, the study explores the impact of factors such as GDP growth, inflation, interest rates, and exchange rates on sectoral stock performance. Using econometric tools such as Vector Autoregression (VAR) and Granger Causality tests, the research will attempt to shed light on dynamic linkages among macroeconomic variables and sectoral-specific stock returns. The results will be used to enlighten investors and policymakers regarding sectoral responsiveness to macroeconomic changes.

Keywords

Macroeconomic Indicators, Stock Market Returns, Sectoral Analysis, GDP Growth, Inflation, Interest Rates, Exchange Rates, Econometric Models, India