Macroeconomic Determinants to Forecast Stock Market Index

Abstract

Stock market is one of the clmnnels througll wlzicll Itouseltold savings get e@ctively invested by deriviizg an advantage of lzigh liquidity. IndustriesfulfEll their need offunds through primary market which results in future returns for economll as a whole, in the fonn of GDP growth, Pmploymandt, monetary gains (capif~l and dividend), technolo~caal dvancements and iilatiy otlter taizgible and intangibleforms. Thus, there exisfs inferdependency between growth of the economy and growth of capital markets. Forecasting of stock prices is questioned by several hypotheses like efficient market and randoin walk