• R.Sindhu
• Dr.K.Soundararajan

The researchers aimed to study the relationship and impact of exchange rate with the movement of Indian stock market. The period of the study was 14 years commencing from January 2006 to June 2019. The researcher selected the indices of Sensex and Nifty as market proxy and exchange rate of Indian rupee against US dollar as proxy for exchange rate. The secondary data were collected from official websites of BSE, NSE and RBI. A total of 3262 observations came, return was calculated for the variables. These data were analyzed using correlation and regression analysis. The results of the study indicated that exchange rate and Indian stock market both in terms of return on Sensex and Nifty had significant negative relationship during the period of study and the quantum of relationship was moderate. Exchange rate explained the movement of Indian stock market to the extent of 9 percent and exchange rate had significant negative impact on the movement of Indian stock market as per the results of regression analysis. The results of correlation analysis during different period of study based on nature of the market showed that irrespective of nature of market, exchange rate had significant negative relationship with Indian stock market. No differences were found in the quantum and nature of relationship under various market conditions such as bull market and bear market.

Stock market, index, return, movement, exchange rate, bear market and bull market.

"AN EMPIRICAL STUDY ON EFFECTS OF CHANGES IN EXCHANGE RATE (` VS $) ON THE MOVEMENT OF INDIAN STOCK MARKET", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.6, Issue 6, page no.75-83, June 2019, Available :http://www.jetir.org/papers/JETIR1907Q60.pdf

"AN EMPIRICAL STUDY ON EFFECTS OF CHANGES IN EXCHANGE RATE (` VS $) ON THE MOVEMENT OF INDIAN STOCK MARKET", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.6, Issue 6, page no. pp75-83, June 2019, Available at : http://www.jetir.org/papers/JETIR1907Q60.pdf