Title: Effect of Indian politics on the Indian stock market

Authors: Jayesh M. Dhodiya, Nirav Shah

Addresses: S.R. Institute of Management and Computer Application, Gopalvidyanagar, Tarsadi, Surat, Gujarat, India. ' S.R. Institute of Management and Computer Application, Gopalvidyanagar, Tarsadi, Surat, Gujarat, India

Abstract: The financial market always increases or decreases due to some information. At present, stock markets have been showing extremely unpredictable movement, which is only due to new pieces of information, and news or events. The economy of any country is evaluated by the stock market and this stock market depends on factors such as, politics, inflation, interest rate, exchange rate, GDP, GNP, changes in ruling parties, elections, etc. Now, what are the factors that ultimately lead to stock market fluctuations is a big question? Thus, questions arise that whether the stock market movements are affected due to politics? Due to inflation? Due to interest rate? Due to exchange rate? Due to GDP? or due to GNP? This would try to analyse the political issues in the context of the Indian stock market and try to know if the Indian stock market fluctuations are dependent on political issues such as government policy, ruling party, political leader statement, etc. or not.

Keywords: political issues; stock markets; regression analysis; ANOVA; analysis of variance; fluctuation; SPRT; favourable events; unfavourable events; India; Indian politics; financial markets; stock market fluctuations.

DOI: 10.1504/IJEBR.2011.040019

International Journal of Economics and Business Research, 2011 Vol.3 No.3, pp.253 - 261

Published online: 22 Apr 2015 *

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