Macroeconomic Factors Influencing the Indian Stock Market with Special Reference to Bombay Stock Market

The present will try to highlight the impact of the macroeconomic factors on the stock market with special reference to the Bombay Stock Exchange (BSE). Macroeconomic factors like inflation, interest rate, and exchange rate have been considered to ascertain the impact level on the stock market. Whether it has a negative impact or a positive impact on the stock market or not is one of the important research questions. In order to analyse and test the hypothesis, 11 years of stock market returns data have been considered from 2010 to 2020, along with inflation, interest rate, exchange rate, etc. Statistical tools, i.e., regression analysis, have been used to test the hypothesis, and the result of the study highlighted that there is a negative macroeconomic impact on the stock market.