Analysis of Stock Market Performance and Economic Growth in India | Original Article

ABSTRACT:

The connection between financial exchange improvement and monetary movement has consistently been the subject of extensive discussion in the field of financial aspects and it brings up observational issue whether financial exchange advancement impacts financial action or whether it is an outcome of expanded monetary action. This examination endeavors to research the course of causality between financial exchange advancement and monetary development in the Indian setting. Utilizing the co incorporation and causality tests for the period June 1991 to June 2013, the examination affirms an all around characterized since quite a while ago run balance connection between the financial exchange advancement markers and monetary development in India. The experimental outcomes show bidirectional causality between market capitalization and financial development and unidirectional causality from turnover proportion to monetary development over the long haul and short-run. Overall, it very well may be gathered that the securities exchange advancement markers viz. market capitalization and turnover proportion affect monetary development in India.