Impact of Global Economic Turmoil on Indian Stock Market

Economic global crises and its spread have been increasing with the increase in the policy of globalization. The origin of crises may be different but the impact of the crises being felt in different parts of the world including India. Indian economy has recently faced the tremors of global recession originated from United States during the period 2007 to 2010. As per the opinion of economic researchers, Indian economy started reviving itself from the impact this global meltdown gradually from 2010 onwards. The present paper attempts to analyze the impact of economic turmoil on Indian stock market by evaluating the effect in pre and post-recession era by examining the trends of various macroeconomic indicators during this duration, as well as by establishing a statistical relationship reflecting the effect of these macroeconomic variables on the leading stock market indices of India.