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Abstract

Present study is an attempt of indentifying relationship between Indian economic growth and NSE indices return, for indentifying the relationship quarterly return of NSE Indices Nifty 50 wasconsidered on quarterly basis during April 2005 to December 2016. ADF and Least Square Linear Regression and multiple regression were used. Results of this study provide evidence in favor of ‘demand following’ hypothesis for the Indian context in the long-run. Findings of the study suggest that the economic growth has been playing an important role in determining the stock price movements and economic growth tends to be more likely to stimulate and promote stock market development by adopting appropriate reallocation of resources but have impact in long run and less in short run.

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