IMPACT OF ECONOMIC FACTORS ON MARKET VOLATILITY - A STUDY OF NSE INDIA

The present study has been focused on the economic factors impact on the market volatility. The study has considered the NSE India base index – Nifty from the period of 2009-10 to 2019-20. The study examined the impact of select economic factors on the Nifty volatility with the help of statistical method of ARCH model. The study result indicates that the GDP influence has been found higher compared with the IIP and Inflation on the Nifty volatility. The study examined the future movement of the economic factors, which are having the significant influence on the nifty volatility with the help of ARIMA. The study result reveals that the IIP will change constantly but inflation will be expected to go downwards in the coming future. This paper will be useful to the Equity Market Investors, Fund Managers, Regulators, Government stakeholders and Academic researchers.