An Analytical Study on the Impact of Interest...

An Analytical Study on the Impact of Interest Rate on Stock Market in India

Author Name : Rohit

ABSTRACT: The present review tries to gauge easygoing connection between Interest Rate and Stock Market. The effect of loan fee and securities exchange returns in India is contemplated, by utilizing yearly information from 2004 to 2014. We have considered macroeconomic factors for the review: Interest Rates (Central and State Government Securities) and CNX Nifty. The review uncovers that there is a positive high level of connection between's financing cost and CNX Nifty through Regression Method of procedure. The review infers that the loan fee influences stock returns and stock returns influence the financing cost. In this manner, the present review demonstrates that, the Indian Stock Market has connection with the development of financing cost in India and the other way around.