Indian Stock Market and Monetary Policy, Its Impact on Stock Returns
Journal Title: IJAR-Indian Journal of Applied Research - Year 2016, Vol 6, Issue 7
Abstract
Monetary policy is the macroeconomic policy laid down by the central bank. It involves management of money supply and interest rate and is the demand side economic policy used by the government of a country to achieve macroeconomic objectives like inflation, consumption, growth and liquidity. The monetary policy instruments are Cash Reserve Ratio, Statutory Liquidity Ratio, Open Market Operations, Liquidity Adjustment Facility, and Marginal Standing Facility. The main objective is to study the interrelationship between change in interest rate, inflation and stock returns. The study uses the time series data obtained from the main source i.e. official website of Indian Economy provided by Reserve Bank of India. The results shows that changes in cash reserve ratio, LAF, SLR, reverse repo rate, repo rate have some information content for the stock market that may lead to changes in the stock prices and to aggregate stock market returns.
Authors and Affiliations
Dr. Sarvamangala R. , Dhakshayini K. N.
Keywords
Related Articles
- EP ID EP362731
- DOI -
- Views 46
- Downloads 0
Glycosylated hemoglobin (HbA1c): A Biomarker of Anti Aging
Glycosylated hemoglobin (HbA1c) is a marker of evaluation of long-term glycemic control in diabetic- pa tients that predict risks for the development and progression of diabetic complications. The aim of this study is to...
DESIGN OF DIGITAL DISPLAY TYPE FUEL GAUGE FOR AUTOMOBILES
Now-a-days all of us are using only analog fuel gauge for the intimation of fuel level or quantity of fuel present in the fuel tank. No one is preferring digital fuel gauge to indicate quantity of the fuel. The major pro...
ACUTE PYELONEPHRITIS PRESENTING AS ACUTE ABDOMEN IN DIABETIC PATIENTS: CASE REPORT
Acute pyelonephritis is a potentially fatal infection which often presents with varied clinical signs and symptoms. Diagnosis is often get delayed as there is no consistent set of signs and symptoms that are both sensiti...
A Comparative study of Laparoscopic Trans Abdominal Pre-Peritoneal Inguinal Meshplasty [TAPP] Versus Lichtenstein Open Inguinal Meshplasty
Background: Hernia surgery has undergone tremendous refinement in technique. Various methods have been advocated by different authors but each has got its own merit. Lichtenstein open inguinal meshplasty (LOIN) involve...
Cyber Crimes and New Challenges Before Mordern Society
The stakes involved in cyber crimes are more serious due to the inherent characteristics of the network fu-nction ing. With the help of technology, the criminals are able to conduct their activities in much more sophisti...