5.

0 APPENDIX
Table AP1: Results of Wald test
Test Statistic Value p-value
F-stat 39.86 0.00

Chi-square 79.73 0.00

Note: Wald test works on the null hypothesis that the coefficients are significantly different from zero

Table AP2: Structural Break in the Series

Structural Break Date 2009M11
Test-stat Value P-value

F-stat 2.68 0.0510

Note: Chow test works on the null hypothesis that there is no structural break in the series

Table AP3: Correlation Matrix

LNER LNIIP REPO INFLATION GDPgr

LNER 1.0000 -0.6708 -0.438157 0.298362 0.436827

LNIIP 1.0000 0.834121 0.348118 -0.664148

REPO 1.000000 0.611774 -0.622641

INF 1.000000 -0.413781

GDPgr 1.000000

Note: The table reports the correlation between specific macroeconomic variables

Figure AP1: CUSUM Test statistic for the stability of model

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2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

CUSUM 5% Signific anc e

1
Figure AP2: CUSUM Test Results (Alternate Model)
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2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

CUSUM 5% Signific anc e

6.0 REFERENCES
JOURNALS:

 Naik, P.K. & Padhi, P. (2012).The Impact of Macroeconomic Fundamentals on Stock

Prices Revisited: Evidence from Indian Data. Eurasian Journal of Business and
Economics, 5 (10), 25-44
 Causal Relationship Between Macro-Economic Variables and Stock Market: A Case Study
for India. International Journal of Research in Business Management, 2 (11), 43-54
 Humpe & Macmillan, P. (2009). Can macroeconomic variables explain long-term stock
market movements? A comparison of the US and Japan. Applied Financial Economics,
19:2, 111-119
 Ashwani & Sheera, V.P (2014). Macroeconomic Variables and Stock Market: Empirical
Evidence from India. Guru Jambheshwar University, Hisar
 Geeetha, Mohidin, R. (2011). The Relationship Between Inflation And Stock Market:
Evidence From Malaysia, United States And China. International Journal of Economics
and Management Sciences., 1 (2), 1-16
BOOKS:

 Agung, G.N. (2009). Time Series Analysis using Eviews. John Wiley& Sons (Asia) Pte Ltd.
Clementi Loop, #02-01, Singapore, 129809. ISBN 978-0-470-82367-5
 Asteriou, D. (Applied Econometrics: A modern Approach using EViews and Microfit.
Palgrave Macmillan ltd., New York - 10010. ISBN: 1-4039-3984-5