• Harsh garg
• shankar narayanmurguraj
• Dr. rajkuamr.s

THE EFFECT OF INFLATION IN STOCK MARKET Harsh Garg, Shankar Nrayanmurguraj ABSTRACT: The primary focus of the research was to find the relation between share prices and inflation. The research begins by examining the role and operation of a stock market and focuses on the stock market of different countries. With the help of historical stock market and inflation data, the relationship between share prices and inflation is investigated. The factors were tried for long memory and it was seen that such property existed in these factors, making it an alluring component of which financial backers can exploit. This is because of the foundation of since a long time ago run impact of expansion and conversion scale on financial exchange returns. Keywords - Stock market, Inflation, Return ________________________________________ Author1 : Harsh Garg, Student, Xime Institute of Management & Entrepreneurship, Bangalore Author2 : Shankar Narayana Murugaraj, Student, Xime Institute of Management & Entrepreneurship, Bangalore Research objectives: The goal of the study is to determine the relationship between stock market returns and other macroeconomic data, especially inflation, in order to gain a better understanding of how the economy functions as a whole. The interdependency of the factors on each other and the full working of all of the factors. And what is the relationship between inflation data and the stock market as a whole, as well as the economic impact of this data. Literature review: Previous research has found that in certain cases the researchers have compared the Stock market and macroeconomic variables which has its influence towards the inflation of the country. In most cases there have been differences in between the relationship between the stock market and inflation due to other economic factors. RESEARCH DESIGN AS the current study is analytical quantitative and historical in nature, the data collected for the study purpose was chiefly from secondary sources. Various sources are being referred for the collection of data. Discussed 2-3 major stock exchanges of the world to find out a relation between them and get a complete insight about the study that it has effect over developed countries only or this can be applied in developing countries also. Model used Linear regression model has been used to test and time series is used so that to get a specific result for the field of study. As in time series we have done 2 types of 4 quarter analysis and 8 time series time series and compared the value of r square as that has shown a change between and more accurate result for this. The main objective of the study was to find out the relation between stock returns and inflation. And to investigate the impact of inflation on stock index, and to give suggestions based on empirical study to the policy makers and market participants. Future approach We have goon through the quarterly index analysis of the stock market returns and the inflation data with context to that the period shows various other factors also that affect the market so hard not just the market were totally moving along with the inflation and macroeconomics data in the developed or developing countries as they have to react to other factors in the world. So there were no direct relation between the two but for future some models should also be examined so that best results can be seen in this study the models used by us and the data we collected has not shown any hint of relation between the two so with that the other researches should go through weekly and monthly data might be or keeping other changes constant that might give a best result out of the same .

"The effect of inflation on stock market returns ", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.8, Issue 8, page no.e603-e611, August-2021, Available :http://www.jetir.org/papers/JETIR2108560.pdf

"The effect of inflation on stock market returns ", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.8, Issue 8, page no. ppe603-e611, August-2021, Available at : http://www.jetir.org/papers/JETIR2108560.pdf