A Study of Relationship in Between Indian Stock Market and Economic Growth : A Review

Abstract

Securities trade has been associated with monetary improvement through its part as a hotspot for new private capital. Other hand, budgetary advancement may be the impulse for securities trade improvement. Accordingly, the inspiration driving this paper was proportional to research causal associations between securities trade. Whether securities trade change causes, or is attributable to, money related advancement is an unsettled issue. It expect more noticeable centrality for India given tremendous spurt in securities trade practices in the latest decade. There is compelled time-game plan econometric verification that reports the association between securities trade upgrades and the Indian economy. Causality tests in the present study are gone before by thought testing which gives a more ordinary setting to causality studies and acceptances. Moreover, the present study attempts to overcome the issues experienced by past research by building and using a composite document of securities trade headways. This paper endeavors to investigate whether there is a relationship between securities trade headway and financial advancement because of a making economy, for instance, India. The results, exhibit that market capitalization and regard traded extents have a to a great degree weak negative association with fiscal advancement while turnover extent has an incredibly strong positive association with budgetary improvement.