Effect of Macroeconomic Variables on BSE

Abstract

The volatility of stock market indicators goes beyond anyone's reasonable explanations. Industry performance, economic and political changes are among the major factors that can affect the stock market. While there are many influences behind the constant changes in stock market performance, this study examines the impact of gold prices and crude oil price on BSE index. Regression analysis technique has been used to find out the relationship. The period of the study is January 2002 to March 2010. The result shows that changes in crude oil prices and gold prices have little or no effect on the BSE Index.