Summary and Conclusion
This study examines the role of some fundamental macroeconomic factors in explaining the long and short-run behavior of the Indian stock market. In particular, this study examines the long and short-run dynamic relationships between stock prices and eleven selected macroeconomic variables over the period from April 1993 to March 2013. These macroeconomic variables consist of six internal macroeconomic variables, namely, inflation rate, interest rate, money supply, index of industrial production, gold price, and foreign exchange reserve, and five external macroeconomic variables, namely, crude oil price, exchange rate, foreign institutional investments, foreign trade, and US S&P 500 stock index.
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