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ORIGINAL ARTICLE
The Macro Lens: Exploring the Impact of Macroeconomic Variables on India's Small Cap, Mid Cap, and Large Cap Indices
1
Christ University, School of Business and Management, India
Submission date: 2025-07-04
Final revision date: 2025-07-10
Acceptance date: 2025-07-15
Online publication date: 2025-11-27
Publication date: 2025-11-27
Corresponding author
Economic and Regional Studies 2025;18(3):376-388
KEYWORDS
Gross Domestic ProductConsumer Price IndexForeign Institutional InvestmentDomestic Institutional InvestmentPurchasing Managers’ IndexGold Price
JEL CLASSIFICATION CODES
E01
E20
F21
G15
G11
G23
E22
L60
E31
E42
G11
Q31
TOPICS
ABSTRACT
Subject and purpose of work: This study explores the intricate relationship between key macroeconomic variables and India's equity market segments, specifically the NIFTY Small-cap, Mid-cap, and Large-cap indices. Materials and methods: The research analyses monthly data spanning five years, from January 2019 to January 2024. The macroeconomic indicators considered include Foreign Institutional Investment (FII), Domestic Institutional Investment (DII), Consumer Price Index (CPI), Purchasing Managers' Index (PMI), Treasury Bill Rate, Gold Price, and Reverse Repo Rate. S Results: The findings reveal that GDP, CPI, PMI, and Gold Price exhibit no statistically significant influence on the NIFTY Small-cap, Mid-cap, or Large-cap indices, aligning with certain earlier studies Conclusions: These insights are valuable for investors, policymakers, and financial analysts in refining investment strategies, informing policy frameworks, and enhancing market forecasting models.
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