Impact of Selected Macroeconomic Indicators on S & P BSE SME IPO Index
Keywords:
Macroeconomic Indicator, S & P BSE SME IPO index, Correlation, Multiple Regression, Granger CausalityAbstract
The prime objective of this research is to examine the impact of the selected macroeconomic variables on S&P BSE SME IPO index. Correlation, Multiple regression and Granger casualty tests have been used to estimate the relationship and impact. The variables selected for this study is average monthly closing price of S&P BSE SME IPO and macroeconomic indicators like; Index of Industrial production (IIP), Gross Domestic Product (GDP), Interest Rate (IR), Foreign Direct Investment (FDI), Inflation Rate (IF), Exchange Rate (ER), and Crude oil Price (CP). An average monthly data over a period of three years are taken, starting from January 2013 to December 2015. The result shows that, Interest rate and Inflation rate have a significant positive impact on stock market index. Whereas, Exchange rate shows a negative significant impact. Granger causality results reveals a unidirectional relationship between SME IPO Index and Crude Oil price, GDP, FDI and Interest rate.
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