Impact of Industrial Growth on Indian Stock Market: With Reference To BSE SENSEX and NSE CNX NIFTY

The index of Industrial is an indicator which details out the growth rate of various sector in an economy such as mineral mining, electricity and manufacturing etc. It measures also the short-term changes in the volume of production of a basket of industrial production during the given period of time. In this study secondary data from 2012 to 2020 has been used to evaluate the result. The main sources are Ministry of Statistics and Program Implementation (MOSPI), BSE and NSE and regression analysis through SPSS has been used to evaluate the result. The finding of the study revealed that there has been a strongest degree of positive correlation and direct linear relationships between IIP & BSE SENSEX and NSE Nifty. The results of the regression residual analysis revealed that IIP has been significant predictors to measure the bull and market trends in Index of Industrial production in Indian Markets. Since the coefficients of determination is not equal to zero which shows that IIP is one of the predictive variables but there may be some other factors also which drives through the markets. So, It can be concluded that behavior of some other market factors like foreign direct investors will influence the performance of the Industrial production in India.