Abstract:
This paper covers the financial system with two main components GDP and Stock
Exchange. It Means this two variables one is study (Independent) variable (GDP) and Stock
Market Dependent Variable. Researcher has collected Data from the secondary source like
website and Stock Market because study based on secondary information which available on
online source. Financial system is very important to control the economy of any country so every
country has to focus on it. Researcher has main objective is to know; To know the impact of GDP
on stock market as a macroeconomic variable, To find out the relationship between gross
domestic products (GDP) and stock market movement in India, To know the impact of gross
domestic products (GDP) on the stock market movement in India. Researcher has used
Statistical tools for testing hypothesis like Descriptive statistics, Co-relation and simple
Regression analysis. Through this study researcher has concluded strong relationship between
GDP and SENSEX because co-relation result is 0.965768 and co-relation between GDP and
NIFTY 50 is 0.970837.
