Study of the Impact of Macro Economic Variable & Their Role as an Indicators for the S&P CNX Nifty

In the present scenario of the world financial market, there seems to be stock exchange in almost every country expressing the financial health of the respective economy. In spite of this tremendous expansion of world trading, the basics of the market have remained more or less the same. Stock exchange index like any other index follows a cycle or set pattern of flow. This economic cycle have been analyzed with the help of the leading and lagging indicators with respect to the trends in the financial markets. In this study a comprehensive analysis has been done to qualitatively compare the S&P CNX Nifty with major macro economic variable like GDP, inflation, Exchange rate, industrial production, foreign institutional investment, unemployment, crude oil. Thus all the variable contains some significant information for the prediction of the index