Macroeconomic Factors and Stock Market Return in Nepal

Narayan Kattel

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Macroeconomic Factors and Stock Market Return in Nepal

Narayan Kattel

Subject area: Management and Commerce · Area of research: Management

Abstract

This study examines the relationship between key macroeconomic variables and the stock market return in Nepal, particularly focusing on the NEPSE Index. Using time series data from 2014 to 2023 and employing multiple regression analysis, the study evaluates the influence of interest rate, inflation rate, exchange rate, industrial production, and broad money supply on stock market performance. Results reveal that exchange rate and money supply significantly and positively affect NEPSE, while inflation and interest rates show a negative but statistically insignificant impact. The findings are expected to aid investors and policymakers in understanding economic drivers of market behavior in Nepal.

References

[1] Nepal Rastra Bank (NRB) Annual Reports (2014–2023)

[2] Securities Board of Nepal (SEBON) Market Bulletins

[3] Ministry of Finance, Government of Nepal

[4] Economic Surveys

[5] Chen, N. F., Roll, R., & Ross, S. A. (1986). Economic forces and the stock market. Journal of Business

[6] Fama, E. F. (1981). Stock returns, real activity, inflation, and money. American Economic Review

[7] Pilinkus, D. (2010). Macroeconomic indicators and their impact on stock market performance in the short and long run. Technological and Economic Development of Economy

How to cite this paper

Narayan Kattel "Macroeconomic Factors and Stock Market Return in Nepal" Iconic Research And Engineering Journals Volume 9 Issue 1 2025 Page 1960-1961

Narayan Kattel "Macroeconomic Factors and Stock Market Return in Nepal" Iconic Research And Engineering Journals, vol. 9, no. 1, Jul. 2025

Narayan Kattel (2025). Macroeconomic Factors and Stock Market Return in Nepal. Iconic Research And Engineering Journals, 9(1).

Narayan Kattel "Macroeconomic Factors and Stock Market Return in Nepal" Iconic Research And Engineering Journals, vol. 9, no. 1, Jul. 2025.

@article{1709899,
      author = {Narayan Kattel},
      title = {Macroeconomic Factors and Stock Market Return in Nepal},
      journal = {Iconic Research And Engineering Journals},
      year = {2025},
      volume = {9},
      number = {1},
      pages = {1960-1961},
      issn = {2456-8880},
      url = {https://www.irejournals.com/formatedpaper/1709899.pdf},
      abstract = {This study examines the relationship between key macroeconomic variables and the stock market return in Nepal, particularly focusing on the NEPSE Index. Using time series data from 2014 to 2023 and employing multiple regression analysis, the study evaluates the influence of interest rate, inflation rate, exchange rate, industrial production, and broad money supply on stock market performance. Results reveal that exchange rate and money supply significantly and positively affect NEPSE, while inflation and interest rates show a negative but statistically insignificant impact. The findings are expected to aid investors and policymakers in understanding economic drivers of market behavior in Nepal.},
      month = {July},
  }