Factors Influencing Stock Price Movements in India: The Role of Macroeconomic Conditions, Geopolitical Risk, and Trade Policies

  • Unique Paper ID: 193772
  • PageNo: 1149-1152
  • Abstract:
  • Stock markets contribute significantly to economic progress by channeling savings into productive investments and supporting capital formation. In India, equity markets have experienced noticeable fluctuations in recent years due to changing domestic economic conditions and rising global uncertainties. Benchmark indices such as the NIFTY 50 and BSE Sensex reflect these movements and serve as indicators of investor confidence. This research analyses the major determinants affecting stock price movements in India by combining primary survey findings with secondary market information. Primary data were gathered from 16 respondents using a structured questionnaire to assess perceptions regarding macroeconomic indicators, monetary policy actions, foreign investment flows, geopolitical tensions, trade restrictions, and investor sentiment. Secondary data were referred from publications of the Reserve Bank of India, National Stock Exchange, Bombay Stock Exchange, and other financial reports. The results indicate that GDP growth, RBI interest rate decisions, Foreign Institutional Investor (FII) flows, crude oil prices, geopolitical conflicts, and trade tariffs are perceived as key drivers of stock price fluctuations. The study concludes that long-term market growth depends on macroeconomic stability, whereas short-term volatility is largely influenced by external shocks and investor psychology.

Copyright & License

Copyright © 2026 Authors retain the copyright of this article. This article is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

BibTeX

@article{193772,
        author = {Fizza Abbas and Rashmi Tripathi},
        title = {Factors Influencing Stock Price Movements in India: The Role of Macroeconomic Conditions, Geopolitical Risk, and Trade Policies},
        journal = {International Journal of Innovative Research in Technology},
        year = {2026},
        volume = {12},
        number = {10},
        pages = {1149-1152},
        issn = {2349-6002},
        url = {https://ijirt.org/article?manuscript=193772},
        abstract = {Stock markets contribute significantly to economic progress by channeling savings into productive investments and supporting capital formation. In India, equity markets have experienced noticeable fluctuations in recent years due to changing domestic economic conditions and rising global uncertainties. Benchmark indices such as the NIFTY 50 and BSE Sensex reflect these movements and serve as indicators of investor confidence. 
This research analyses the major determinants affecting stock price movements in India by combining primary survey findings with secondary market information. Primary data were gathered from 16 respondents using a structured questionnaire to assess perceptions regarding macroeconomic indicators, monetary policy actions, foreign investment flows, geopolitical tensions, trade restrictions, and investor sentiment. Secondary data were referred from publications of the Reserve Bank of India, National Stock Exchange, Bombay Stock Exchange, and other financial reports. 
The results indicate that GDP growth, RBI interest rate decisions, Foreign Institutional Investor (FII) flows, crude oil prices, geopolitical conflicts, and trade tariffs are perceived as key drivers of stock price fluctuations. The study concludes that long-term market growth depends on macroeconomic stability, whereas short-term volatility is largely influenced by external shocks and investor psychology.},
        keywords = {Stock Market Trends, Economic Indicators, Monetary Policy, FII Flows, Geopolitical Risk, Trade Barriers, Investor Sentiment},
        month = {March},
        }

Cite This Article

Abbas, F., & Tripathi, R. (2026). Factors Influencing Stock Price Movements in India: The Role of Macroeconomic Conditions, Geopolitical Risk, and Trade Policies. International Journal of Innovative Research in Technology (IJIRT), 12(10), 1149–1152.

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