Impact of Macroeconomic Factors on the Indian Stock Market

The research paper investigates the impact of selected macroeconomic factors on the Indian stock market performance. Using a comprehensive dataset spanning key macroeconomic indicators and stock market performance metrics, the statistical analysis techniques to examine the relationship between macroeconomic variables and stock market movements is employed. The study focuses on understanding how changes in Foreign Portfolio Net Investments, Index of Industrial Production, Consumer Price Index and Exchange Rate can influence investor sentiment and trading behaviour in the Indian stock market. The findings of this research contribute to a deeper understanding of the dynamics between macroeconomic factors and stock market performance in India, providing valuable insights for investors, policymakers, and financial institutions. Keywords: Foreign Portfolio Net Investments (FPI), Index of Industrial Production (IIP), Consumer Price Index (CPI), Exchange Rate(ER), NIFTY, Indian Stock Market, Inflation.