Author(s)
Mr. Somaling Vitthal Kattimani, Miss. Thanushree, Miss. Harshitha, Mr. Mahammad Sinan
- Manuscript ID: 120749
- Volume 2, Issue 6, Jun 2026
- Pages: 1135–1145
Subject Area: Economics and Econometrics
Abstract
The stock market plays a crucial role in economic development by mobilizing savings and allocating capital efficiently. However, stock market movements are often influenced by various macroeconomic factors, resulting in fluctuations and volatility. This study examines the impact of selected macroeconomic indicators, namely Inflation Rate, Gold Rate, Crude Oil Prices, Exchange Rate, and Gross Domestic Product (GDP) Growth Rate, on the performance of the Bombay Stock Exchange (BSE) Sensex during the period 2021–2025. Secondary data were collected from BSE India and Trading Economics. Statistical tools such as Arithmetic Mean, Standard Deviation, Correlation, and Regression Analysis were employed to examine the relationship between macroeconomic indicators and Sensex values. The findings reveal that Gold Rate and Crude Oil Prices exhibited a significant positive influence on Sensex during most years of the study period. Inflation Rate showed a significant positive impact only in 2025, while Exchange Rate demonstrated significance during the initial years but weakened subsequently. GDP Growth Rate exhibited an inconsistent relationship and remained statistically insignificant in most years. The study concludes that macroeconomic indicators affect stock market performance differently across periods, highlighting the dynamic nature of financial markets and the importance of economic conditions in determining stock market volatility.