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Impact of Macro-Economic Factors on Sectoral Indices – Evidence from Indian Markets

Author

Listed:
  • Naveen R.S.

    (Sri Sathya Sai Institute of Higher Learning, India)

  • N. Sivakumar

    (Sri Sathya Sai Institute of Higher Learning, India)

Abstract

The impact of macro-economic factors on stock returns has been long proven through research studies. This paper extends this idea to understand the impact of macro-economic factors on sectoral indices of the National stock exchange (NSE) of India. The study uses data over a 10 year period. Based on regression models, the study shows that crude oil prices and forex rates have a pervasive significant impact on sectoral indices. Besides, there are several other macro-economic factors which affect specific sectoral indices.

Suggested Citation

  • Naveen R.S. & N. Sivakumar, 2016. "Impact of Macro-Economic Factors on Sectoral Indices – Evidence from Indian Markets," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 5(3), pages 174-182, August.
    • Handle: RePEc:ods:journl:v:5:y:2016:i:3:p:174-182
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    References listed on IDEAS

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