RAMIFICATIONS OF STOCK MARKET’S BEHAVIOR ON ECONOMIC GROWTH IN INDIA
The impeccable constituents of financial market i.e. Stocks and Securities and stock exchanges has an immediate effect on the Economic parameters of growth and development in any country. With increased growth in the stock markets in India, the relationship between economic growth and stock market performance has become a matter of intensive theoretic and empirical research. The main purpose of this study was to explore the causal link between stock market performance and economic growth in terms of a simple theoretical and empirical literature framework. Researchers hold diverse opinions regarding the importance of stock markets playing a significant role in economic growth processes by performing the functions like improving liquidity, aggregating and mobilizing capital, observing managers and exerting corporate control, providing risk-pooling and sharing services including investment levels. The growing theoretical literature argues that stock markets are crucially linked to economic growth. This paper is an attempt to study the study the impact of various economic indicators on GDP, Foreign Exchange Reserves and Inflation and to know the impact of BSE 30 index on the growth of GDP and Foreign Exchange Reserve and also conclude with the results showing the changes in economic indicator with respect to growth and sustainability.