Dr. Pitri Raj AdhikariNanu Shrestha2025-01-132025-01-132024https://hdl.handle.net/20.500.14540/23596Variability in the inflation and interest rates directly drives the money market from the capital market. Since changes in interest rates and inflation are negatively correlated with stock prices and GDP has the positive relation with the stock exchange the stocks are sensitive to changes in both variables. The study's precise goals are to determine the trends in the GDP, interest rates, inflation rates, and NEPSE index as well as to investigate the connections between these variables. The primary goal of the research is to examine the independent and combined effects of interest rates and inflation rates on the NEPSE index. Causal research approaches have been employed in this analysis to address the many concerns raised in the study. This research includes a wide range of fact-finding explorations and analytical techniques. The main objective of descriptive research is to portray the situation as it is at the moment. This is done in order to identify and characterize the characteristics of the variables of interest. The study discovered that the NEPSE index is significantly impacted negatively by both the interest rate and the inflation rate. Conversely, the NEPSE index exhibits a positive correlation with GDP, one of the other factors. According to the negative relation, the NEPSE index will rise in the event of a decline in lending interest rates and fall in the event of an increase in interest rates. According to the positive influence, the NEPESE index will rise in tandem with an increase in the inflation rate. Key Words: Inflation rate, Nepal Stock Exchange (NEPSE), Interest Rate, GDP and Stock Market.en-USThesis