Open AccessImpact of Interest Rate on the Nifty Auto Sector Index – Evidence from India
Publication year - 2019
Publication title -
international journal of recent technology and engineering
Language(s) - English
Resource type - Journals
ISSN - 2277-3878
DOI - 10.35940/ijrte.c1088.1183s319
Subject(s) - interest rate , index (typography) , econometrics , stock market index , economics , closing (real estate) , stock market , pearson product moment correlation coefficient , linear regression , financial economics , statistics , mathematics , monetary economics , computer science , finance , geography , context (archaeology) , archaeology , world wide web
The paper critically examines the interest rate announced by RBI with respect to other factors which it affects and its implications on the Nifty auto sector indices of Indian stock market. The primary objective of the paper is to study the direct impact of interest rate on stock indices and propose a model for forecasting indices based on the interest rate. Karl’s Pearson coefficient of correlation and linear regression model is been used to analyse the impact and forecasting. It has been found that there is positive or direct relationship of interest rate on the closing price of the index but not significant.