Empirical Relationship of Macroeconomic Variables and Stock Prices : Indian Stock Market and Japanese Stock Market

In the motive of strong democracy and partnerships, India is expected to be act as one of the top three economic powers of the world over the next 10-15 years and has emerged as the fastest growing major economy in the world. A stock exchange acts as a platform for financial instruments like stocks and derivatives were traded. The relationship between macroeconomic variables and stock prices has been an attractive subject for both financial and macro economists for a long period of time. The macroeconomic variables were driven the movement of stock prices. The purpose of this study is to find out the impact of various macroeconomic variables on Indian Stock Market and Japanese Stock market and also relationship exists through the data collected from the period 1st April 2013 to 31st March 2018 by using e-views Software, Descriptive Statics and Correlation which helps investors to consider all relevant source of information for Investment Decision making