Volume : 8, Issue : 9, September - 2019

A Study on Long run Relationship between Stock Market Returns and GDP in India

Manjunatha G, Prof. M. Mahesha

Abstract :

A financial system is a facilitator of economic activity and growth. It accelerates the growth of savings, lowers intermediation costs, enables innovation cheaper, helps in evaluating the healthiness of economy, and thereby helps in promising success of monetary and fiscal policies. Present study is undertaken to investigate the long-run relationship between the S&P BSE SENSEX Returns and GDP at Factor Cost. It is found that BSE has significant growth. There is positive long run relationship between market returns and GDP. For every one unit increase in returns, GDP increases by Rs.2.5390 crores.