Inflation and Stock Indices: A Comparative Look

This research paper investigates the reasons behind the volatility of BSE Sensitive Index (SENSEX). The paper assumes Rate of Inflation (based on Consumer Price Index for Industrial Workers and Wholesale Price Index) as independent variable while 30 scrips based Bombay Stock Exchange Sensitive Index (SENSEX) as dependent variable. The study is done on the hypothesis that there is no impact of independent variable on the dependent variables. This study concludes that there is a statistically significant impact of Inflation on Stock Indices.