Investigating the Long-run and the Short-run Relationship Between Domestic Macroeconomic Forces and Indian Equity Market: Evidence based on ARDL Bounds Testing Approach

Understanding the effect of domestic macroeconomic forces on equity market is essential since have a systematic returns. The present study uses monthly observations from India for period January 2012 to December 2019 investigate long-run and short-run relationship between market. employed autoregressive distributed lag (ARDL) bounds testing approach pair-wise granger causality test attain objective. empirical results indicated that Indian are cointegrated. coefficients foreign exchange rate money supply found be significant. suggest supply, inflation significantly influence also observed presence feedback mechanism provides policy managerial implications.