An Empirical Study: Long Run and Short Run Impact of Macroeconomic Variables on Indian Stock Market Prices

The study's main goal is to investigate both the longrun and the short-run effect of macroeconomic variables on stock market prices in India by using ARDL approach. In this study, macroeconomic variables are Share Price Index, Foreign Exchange Rates, GDP, Interest Rates and Domestic Retail Oil Price during the study period 2014 to 2022. The study found that the inflation and exchange rate influences stock prices. However, inflation influences the stock prices negatively in long run whereas Economic growth had impact on stock prices in short run. Moreover, VECM results indicates that the country economic growth is strongly associated with GDP growth (1.491), Forex Markets (0.214) and the study also found the strong relation between GDP and Stock Market Prices.