11. A Study on Impact of Exchange Rate of Currencies on Indian Stock Market

The stock market plays a significant role in the economy, providing a platform for companies to raise capital and for investors to invest in profitable opportunities. The National Stock Exchange (NSE) is one of the leading stock exchanges and is considered as the backbone of the country’s capital market. The NSE is an avenue for trading securities, including equities, debt and derivatives, and provides an efficient and transparent marketplace for investors and traders. This research study aims to examine the relationship between the Indian stock market (NSE) and a basket of currencies, including the US dollar, Euro, Japanese Yen, Great Britain Pound and Chinese Yuan. The study employs a time-series econometric analysis using weekly data over a period of fifteen years from January 2008 to February 2023. The study examines the impact of exchange rate fluctuations on the NSE. The research findings provide important insights for investors and policymakers in understanding the dynamics of the Indian stock market and its relationship with the global economy. The results of this study could have implications for investment decisions, risk management and policy formulation in the context of the Indian economy.