The Relationship between Financial Market Volatility and Macroeconomic Indicators

Authors

  • Dr. Duryodhan Jena

    Professor, Department of Management, Siksha 'O' Anusandhan (Deemed to be University), Bhubaneswar, Odisha, India

  • Dr. Moli Ghosh

    Assistant Professor, Master of Business Administration, Sathyabama Institute of Science and Technology, Chennai, Tamil Nadu, India

  • V. Haripriya

    3Assistant Professor, Department of CS & IT, Jain (Deemed-to-be University), Bangalore, Karnataka, India

  • Sanjay Bhatnagar

    Centre of Research Impact and Outcome, Chitkara University, Rajpura, Punjab, India

  • Divya Sharma

    Chitkara Centre for Research and Development, Chitkara University, Himachal Pradesh, India

  • Rashmi

    Assistant Professor, Maharishi School of Business Management, Maharishi University of Information Technology, Lucknow, Uttar Pradesh, India

  • Dr. Varsha Agarwal

    Director, ISME, ATLAS SkillTech University, Mumbai, India

How to Cite

Jena , D. D. ., Ghosh , D. M. ., Haripriya , V. ., Bhatnagar, S. ., Sharma, D. ., Rashmi, & Agarwal , D. V. . (2025). The Relationship between Financial Market Volatility and Macroeconomic Indicators. International Journal of Accounting and Economics Studies, 12(SI-1), 291-296. https://doi.org/10.14419/ggy30r95

Received date: May 28, 2025

Accepted date: June 4, 2025

Published date: August 28, 2025

DOI:

https://doi.org/10.14419/ggy30r95

Keywords:

Financial Market; Volatility; Macroeconomic Indicators; Stock Market

Abstract

Economists and experts in finance have recently focused more on the connection between the stock market and the actual economy.  Indeed, it is difficult to envision a world without stock markets currently.  The operations in the stock markets and their connections to the macro economy have taken on a great deal of significance in the current situation, which is characterized by the growing interconnectedness of the financial markets and the execution of different stock market reform measures.  This research aims to investigate the relationship between stock prices and several carefully chosen macroeconomic indicators.  Before that, it's critical to appreciate the significance of the nation's stock market and stock prices. According to financial theorists, the share price is calculated by dividing the number of outstanding shares by the present value of all projected future earnings for the company.  This implies that price is determined by the company's earning potential.  Additionally, the market's estimate of a company's earnings potential is influenced by several elements, including the possible earnings in the future, the potential growth, and the time it will take to achieve those goals. All available information about a firm and its potential for future profitability is reflected in its price.  Prices fluctuate as information about a company's future becomes available to the public.  But future uncertainty can increase volatility, and psychological variables can intensify the impact of fresh knowledge.

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How to Cite

Jena , D. D. ., Ghosh , D. M. ., Haripriya , V. ., Bhatnagar, S. ., Sharma, D. ., Rashmi, & Agarwal , D. V. . (2025). The Relationship between Financial Market Volatility and Macroeconomic Indicators. International Journal of Accounting and Economics Studies, 12(SI-1), 291-296. https://doi.org/10.14419/ggy30r95

Received date: May 28, 2025

Accepted date: June 4, 2025

Published date: August 28, 2025