Abstract

An economy may get a great deal of impetus from the capital market. An economys progress is closely tied to its growth and sustainability. It has been noted that the capital market experiences significant volatility as a result of many economic variables. Those Macro Economic Variables must be studied and analyzed. Hedging and speculating are two uses for the capital market. Understanding the macroeconomic dynamics impacting the capital market is crucial. This article provides a concise analysis of the capital markets link with macroeconomic variables. It is critical to quantify the relationships between changes in macroeconomic variables and stock prices. The article begins with a thorough analysis of key macroeconomic variables that impact choices made in the capital markets. The primary goal of the extensive research was to have a better understanding of these macroeconomic factors and their analysis.