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AN EMPIRICAL ANALYSIS OF THE IMPACT OF MACRO-ECONOMIC FACTORS ON STOCK MARKET RETURNS

📘 Volume 12 📄 Issue 7 📅 july 2025

👤 Authors

Muddireddy Likhitha Reddy, Dr. K. V. Geetha Devi Ph.D 1
1. Madanapalle Institute of Technology & Science, Angallu, Management Studies, Andhra Pradesh

📄 Abstract

This study investigates how key macroeconomic variables interest rates, inflation, GDP growth, exchange rates, and money supply affect stock market returns. Using time-series econometric techniques such as multiple regression, VAR, and co-integration analysis, the research identifies both short-term and long-term relationships. Data is collected from reliable financial institutions to ensure accuracy. The findings highlight significant correlations, suggesting these economic indicators play a crucial role in shaping investor behaviour and market movements. Despite limitations like data constraints and market volatility, the study offers valuable insights for investors, policymakers, and financial analysts. SDG: This project supports SDG 10 (Reduced Inequalities) and SDG 8 (Decent Work and Economic Growth) by promoting financial inclusion and economic understanding. It also relates to SDG 9 (Industry, Innovation and Infrastructure) through the use of advanced econometric methods, and SDG 16 (Peace, Justice and Strong Institutions) by contributing to transparent policy formulation.

🏷️ Keywords

Macroeconomic Variables Stock Returns Investor Behaviour Econometric Analysis Financial Markets.

🔗 DOI

View DOI - (https://doi.org/10.36713/epra23078)

📚 How to Cite:

Muddireddy Likhitha Reddy, Dr. K. V. Geetha Devi Ph.D , AN EMPIRICAL ANALYSIS OF THE IMPACT OF MACRO-ECONOMIC FACTORS ON STOCK MARKET RETURNS , Volume 12 , Issue 7, july 2025, EPRA International Journal of Economics, Business and Management Studies (EBMS) , DOI: https://doi.org/10.36713/epra23078

🔗 PDF URL

https://cdn.eprapublishing.org/article/202507-07-023078.pdf

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