Impact of Interest Rate on the Nifty Auto Sector Index – Evidence from India
Richa Sinha1, Seshanwita Das2
1Richa Sinha, Research Scholar, ACCF, Amity University, Noida (Uttar Pradesh), India.
2Dr. Seshanwita Das, Associate Professor, ACCF, Amity University, Noida (Uttar Pradesh), India.
Manuscript received on 26 November 2019 | Revised Manuscript received on 07 December 2019 | Manuscript Published on 16 December 2019 | PP: 501-503 | Volume-8 Issue-3S3 November 2019 | Retrieval Number: C10881183S319/2019©BEIESP | DOI: 10.35940/ijrte.C1088.1183S319
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© The Authors. Blue Eyes Intelligence Engineering and Sciences Publication (BEIESP). This is an open access article under the CC-BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)
Abstract: 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.
Keywords: Interest Rate, Nifty Auto Indices, Karl Pearson Coefficient of Correlation, Linear Regression Model.
Scope of the Article: Social Sciences