International Journal For Multidisciplinary Research

E-ISSN: 2582-2160     Impact Factor: 9.24

A Widely Indexed Open Access Peer Reviewed Multidisciplinary Bi-monthly Scholarly International Journal

Call for Paper Volume 7, Issue 3 (May-June 2025) Submit your research before last 3 days of June to publish your research paper in the issue of May-June.

Macroeconomic Indicators and their Effect on Investor Sentiment: A Study of Indian Stock Markets

Author(s) Aakshi Mahajan
Country India
Abstract This study explores the relationship between macroeconomic indicators and investor sentiment in the Indian stock market, focusing on variables such as inflation, interest rates, and GDP growth. In an emerging economy like India, macroeconomic factors play a significant role in shaping market dynamics and investor perceptions. The study aims to investigate how these economic indicators influence investor sentiment, which in turn affects stock market performance. By examining historical data, the research identifies patterns between changes in inflation, interest rates, and GDP growth, and corresponding shifts in investor sentiment, using sentiment analysis tools and market indices. The study also considers the impact of these macroeconomic factors on stock market volatility and investor behavior, revealing how periods of economic uncertainty or growth trigger changes in market sentiment. Understanding the link between these macroeconomic variables and investor mood provides valuable insights for market participants and policymakers, particularly in forecasting market movements and managing potential risks. The findings highlight that while macroeconomic stability tends to boost investor confidence, economic volatility can lead to pessimism, resulting in market corrections or even crashes. This research is particularly relevant in the context of India’s growing economy, where changes in macroeconomic conditions can have a profound impact on market sentiment and overall economic health. The results suggest that investors and policymakers need to be proactive in considering macroeconomic trends to better navigate stock market fluctuations and improve financial decision-making.
Published In Conference / Special Issue (Volume 7 | Issue 3) - Two Day International Conference on Commerce & Economics (ICCE-2025) (May 2025)
Published On 2025-05-10

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