Impact of Share Price Volatility and the Macroeconomic Factors

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ACKNOWLEDGEMENT

I would like to thank my supervisor for supporting me throughout my project and giving his valuable suggestions. Finally thanks to all my friends and family for their utmost support and inspiration.

DECLARATION

I, (Your name), would like to declare that all contents included in this dissertation stand for my individual work without any aid, & this dissertation has not been submitted for any examination at academic as well as professional level previously. It also represents my own views & not essentially the ones associated with university.

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ABSTRACT

There is an effective relationship between share price volatility and macroeconomic factors of the countries. This relationship has been checked in the stock market of Nepal by analyzing the share price value of different banks operating in the country and the macroeconomic factors. The macroeconomic conditions are the important indicator of the country's economic performance. The stability and rising trend in the macroeconomic indicators shows that the country has stable economic conditions and earning large revenues from all the sectors. The major macroeconomic indicators of the economy are mainly inflation, interest rate, exchange rates and GDP.

Similarly, the stability in the economic conditions of the country also shows rising trend in its GDP. The rising GDP trend shows that country is generating higher revenues and people have higher standard of living with other benefits offered by the government authorities. The

The aim of performing this research is to analyse the factors that affect the macroeconomic conditions of the countries. The macroeconomic factors are important determinant of the country's economic conditions. The aim of the research study is to analyse the impact of stock markets on the macroeconomic conditions in case of Nepal. To evaluate the economic conditions of Nepal, the changes in the stock market has been analysed by checking the macroeconomic variables of the country. The stock markets are considered to be the barometer of the countries and shows clear picture of future health of the economy. The research study is based on the secondary research methods. The research study includes not only qualitative but quantitative methods as well. The secondary research has been used as research technique for finding out relationship between the share price volatility and macroeconomic factors. The internet publications, studies on similar subjects and article have also been considered for this research. This research began with existing literature detailed analysis. The findings of the study are based on the quantitative data. The final conclusions were drawn from the analysis of secondary data available on the internet and other secondary sources. The literature review and the conclusion of the research are deduced from the secondary sources and the data has been extracted from the sources written in the reference list. The reason for using qualitative research is that it is more subjective and in order to collect information many different methods are used.

The research study has found out that there is significant relationship between the share price volatility and the ...