RELATIONSHIP BETWEEN MACROECONOMIC VARIABLES AND STOCK MARKET TREND

In the present global business era each country is trying to spectator binary number economic growth which is forcing them to adopt swift innovation and rivalry across the globe. In this context Foreign direct investment (FDI) and Foreign Institutional Investment (FII) acting as indicator for the economic growth. FDI and FII has become a gauge instrument for the economic development in India as well as other countries. The purpose of this research is to find out the relationship between stock market trend and the macroeconomic variables i.e. FDI and FII using multiregression techniques where Sensex and Nifty were considered as the diplomat for the Indian Stock market indices. 18 years of data was taken in the study from 2000-2001 to 2017-2018. The findings specifies FDI and FII are moving in a trend with coordination with the Sensex and Nifty and the macroeconomic variables determine the stock market trend The findings will have a immense implication for the national policy makers as well as to corporate institutions.