Interrelation among Economic Growth, Stock Market and Investor Sentiment: An Empirical Study

Authors

  • Tuhin Mukherjee Assistant Professor, Department of Business Administration, University of Kalyani, Kalyani, India
  • Kuntal Chakraborty Research Scholar, Department of Business Administration, University of Kalyani, Kalyani, India

Keywords:

economic growth, investor sentiment, Index of Industrial Production(Iip), Implied Volatility Index(Vix), stock market

Abstract

The main purpose of this article is to find out interrelationship among economic growth, stock market returns and investor sentiment in Indian scenario. In this regard the monthly time series data has been undertaken from January 2014 to December 2019. The proxy representation of respective variable has been chosen from previous literature e.g. Index of Industrial Production(Iip), Nifty50 return and Implied Volatility Index (Vix) have been the proxy for economic growth, stock market returns and investor sentiment respectively. To explore the relationship among these variables different statistical analysis e.g. correlation test, bi-variate casualty test as well as co-integration test have been used. The results of this study shows that in short run economic growth has significant unidirectional causality towards investor sentiment. In long run the all three variables are strongly co-integrated.

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Published

2021-07-05

How to Cite

[1]
T. Mukherjee and K. Chakraborty, “Interrelation among Economic Growth, Stock Market and Investor Sentiment: An Empirical Study”, IJRESM, vol. 4, no. 7, pp. 19–21, Jul. 2021.

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Articles