Impact of Macroeconomic Events on the Market Performance of Selected Listed Companies

Abstract

In numerous countries, financial exchanges are currently a significant and inseparable fabric of the economy. It is among the measurements that show the significance of the financial exchange in a country in surveying the prosperity of the country's economy just as affecting the achievement of the monetary market. Generally, macroeconomics assumes a significant part in building public economies. The Indian capital market has seen a facelift since 1991. With revolutionary internal transformations with economic liberalisation, implementation of Goods and Service Tax (GST) and enactment of demonetization and global events like Brexit and US Elections there has been a significant impact on the securities market. In the world’s 3rd largest economy from Brexit to U.S. elections, price of oil and performance of global indexes, macroeconomics plays a crucial role in the economy affecting the prices of stocks and the fortune of the common man. Thus, the research paper tries to establish the effects of milestone macroeconomic events on the movement of the stocks, in isolation of internal company performance. It is said that the current stock cost of an organization's offer is only the total of assumptions for the financial backers from the organization and the business. Investors and financial backers are highly affected by the monetary market news showing instant response in a positive or an adverse way. Hence, it is vital to comprehend this powerful climate in order to manage and endure major macroeconomic occasions and their impact on their portfolios. The research includes data on financial transactions recorded at exchanges, with increasing numbers of studies in complex systems science aiming to analyse and model stock market behaviour. As a general rule, the company's performance is related to its share price indicating that a rising share price is an indication of good performance in the event of major macroeconomic situations analysing the economic performance of the country on the basis of stock index movements, and also guiding small traders for wealth creation.