GDP Impact on Market Capitalization - An Analysis of BSE

Abstract

The economic growth of any company depends upon its capacity of producing goods and services. The aggregate economic growth of the country is measured by Gross National Product (GNP) or Gross Domestic Product (GDP). The Indian capital market has been attracting considerable attention in recent years especially after the opening up of the economy. As a result, several researchers have addressed various issues pertaining to the capital market in India. The present study examines the impact of GDP on Indian capital market. It tries to find out the homogeneity between GDP on market capitalization growth rates. For this study, information has been gathered from sources other than the ones being studied and a time span of 20 years from 2001 to 2020 has been taken into account. Statistical tools like descriptive statistics, correlation, one-way ANOVA, and the regression model were used.