Vol. 5 No. 2 (2021)
Articles

Co-Integration of GDP and Stock Price: An Empirical Analysis of Indian Companies

Published 2021-08-02

Abstract

This study focus on effect of Gross Domestic Product on stock price of Indian companies listed in BSE.  GDP is an indicator of economic development and measure of total production of a country during specified period.  Secondary data for the period of 19 years from 2001 to 2019 have been collected of 19 companies listed in Bombay Stock Exchange. Panel methods, Unit root, VAR, Johansen cointegration are used to examine the causal relationship between GDP and Stock Price of the companies. Finding of the study reveals positive and significant influence of rate of economic growth stock prices. Study also suggested that stock price not only depends upon economic growth but also on various other company related factors.