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IMDR’s Journal of Management Development & Research 2023-24

Repo Rates: Repo rate changes by the RBI can impact on borrowing costs, liquidity, and investment
decisions in the stock market.

3. Critical review of literature

Khan, J., & Khan, I. (2018) determining the impact of different macroeconomic variables on stock prices

of Pakistan. Study used the monthly data from May 2000 - August 2016. According to the findings, the
money supply, interest rates, and exchange rates have a considerable long-term impact on the stock

prices of the Karachi Stock Exchange. In the short term, however, all of the variables are unimportant,

with the exception of the exchange rate, which has a negative co integration with stock prices.

Ozcan, A. (2012) investigated the connection between macroeconomic factors and the industry index of

the Istanbul Stock Exchange (ISE) The study's macroeconomic variables included the amount of exports
, price of gold, consumer price index, the money supply, interest rates, the exchange rate, the price of

oil, the current account deficit. The ISE industry index is used to determine the impact of specific
macroeconomic variables using the Johansen's co integration test. A long-term equilibrium relationship

between macroeconomic factors and the ISE industry index can be seen by the results of the Johansen's

co integration test.

Arjoon, R., Botes, M., Chesang, L. K., & Gupta, R. (2012) examined the long-term association between

stock values and inflation. King and Watson's (1997) structural bivariate vector autoregressive (VAR)
approach was used to analyze time series evidence about this link. This analysis came to the conclusion

that, at least over time, inflation has no effect on the real value of equities in South Africa.

Bağcı, B., & Çıtak, F. (2020) the study attempts to forecast the macroeconomic factors impacting the
Istanbul Stock Price (XU 100) in Turkey. Data studied over the period of January 2010 to December

2019.For predicting the price of the XU100, a number of variables were determined to be significant.
Gold prices, exchange rate, internal debt stock, the inflation rate, industrial output index, money supply,

credit volume were different economic variables under study.

Smith (2001) studied the ten-year linear relationship between the price of gold and the US stock index.
This study found that no cointegration between the price of gold and the US stock index. The results of

this study's Granger causality tests observed a one directional causal relationship between US stock
returns and gold returns.

Pal, K., & Mittal, R. (2011) including exchange rates, interest rates, inflation rates, gross domestic
savings, and the Nifty index of the Indian economy. The study covered the period from January 1995 to

December 2008. Unit root test, co-integration test, and error correction method have been used to