Impact of Macroeconomic Indicators on Nepse Index

Abstract

Abstract "IMPACT OF MACROECONOMIC INDICATORS ON NEPSE INDEX" is the title of the study. Examining the effects of the money supply, GDP, interest rate, inflation rate, and foreign exchange rate on the NEPSE index is the goal of this study. Essentially, the macroeconomic variables are determined by both qualitative and quantitative aspects. NEPSE is the dependent variable in this study, and the experiment factors include the money supply, GDP, interest rate, inflation rate, and foreign exchange rate. The secondary data was collected from the websites of NEPSE, SEBON, and the Ministry of Finance over a fifteen-year period (2007/08 to 2021/22). The data is analyzed and interpreted using SPSS version 23, with a descriptive and casual comparative study methodology. Correlation research shows that NEPSE has weak positive correlations with the money supply, interest rate, and foreign exchange reserve, while NEPSE and GDP have a weak negative link, suggesting a minor tendency for these variables to move in the same direction. A multiple linear regression model has been used to show how independent variables affect NEPSE. The result demonstrates that, while having an adverse effect on NEPSE, the interest rate and inflation rate are not statistically significant. Similar to the last clue, the money supply and GDP both positively impact NEPSE; the money supply is not insignificant, but the GDP is statistically significant. Key Words: NEPSE, GDP, Interest Rate, Inflation Rate, Foreign Exchange Rate