Correspondence between Monetary Policies and Stock Prices
R. Jeyalakshmi1, P. Vasumath2
1Dr. R. Jeyalakshmi*, Assistant Professor, Department of Manageemnt Studies, Sri Sai Ram Engineering College, Chennai, India.
2Ms. P. Vasumathi, Assistant Professor, Department of Management Studies, Panimalar Engineering College, Chennai, India.
Manuscript received on January 14, 2020. | Revised Manuscript received on January 22, 2020. | Manuscript published on February 10, 2020. | PP: 2809-2811 | Volume-9 Issue-4, February 2020. | Retrieval Number: B7338129219/2020©BEIESP | DOI: 10.35940/ijitee.B7338.029420
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© The Authors. Blue Eyes Intelligence Engineering and Sciences Publication (BEIESP). This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)
Abstract: Money supply in an economy plays a vital role in determining the prices of stocks. This study uses repo rate and reverse repo rate as a proxy for money supply and the stock return from CNX Nifty as the dependant variable. This study uses monthly data for 10 years. The study is aimed at determining the relationship between repo rate, reverse repo rate and stock price return. The study identifies that repo rate and reverse repo rate are significantly affecting he stock return.
Keywords: Nifty, Repo Rate, Reverse Repo Rate, Stock Return
Scope of the Article: Digital Rights Management