Macroeconomic determinants of stock market prices in Nepal

Abstract

This study looks into the "Macroeconomic Determinants of Stock Market Prices in Nepal." This study examines the correlation between the prices on the Nepalese stock market and its RGDP, IR, MS, IP, SMP, and trend. It also examines how Nepal's stock market prices are impacted by macroeconomic variables such as real GDP, the money supply, interest rates, and industrial production. This study employs a descriptive and informal comparative research design. In order to determine the variables influencing liquidity in the commercial banks of Global IME Bank Limited, NMB Bank Limited, and NABIL Bank Limited, descriptive and analytical research methodologies were used in this study. A research design is a set of instructions for collecting and evaluating data that attempts to strike a balance between the study's objective and procedural economy. It's a method for obtaining and assessing data. It provides a series of benchmarks to assist the researcher in heading in the right directions and achieving the goal. This study's research design integrates case study, descriptive, and historical methodologies. Among the 19 commercial banks that served as a sample for this study was Global IME Bank Limited. The term "population" or "universe" in research refers to the totality of any well-defined class of people, things, or occurrences. A sample is an attempt, made in as many diverse ways as possible, to represent the complete population. A single organization's worth of data is examined through the application of descriptive and causal comparative approaches. the trend lines representing bank stock market prices throughout a seven-year study period. Between fiscal year 2015/016 and fiscal year 2021/022, the price of stocks has dropped. the real gross domestic product trend line for banks during the course of the seven-year study period. There has been a decline in the real gross domestic product from the fiscal years 2015–2016 and 2021–2022. the bank interest rate trend line during the course of the seven-year study period. During the period from fiscal year 2015/016 to fiscal year 2021/022, interest rates have grown. The money supply ratio trend line for banks throughout a seven-year study period. Between fiscal years 2015–16 and 2021–022, there has been a decline in the money supply ratio.