Macroeconomic Factors for Stock Return in Nepal

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Dr. Narayan Kattel
Dr. Narayan Kattel

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Macroeconomic Factors for Stock Return in Nepal

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Abstract

This study examines the relationship between key macroeconomic variables and the stock market return in Nepal, particularly focusing on the NEPSE Index. Using time series data from 2014 to 2023 and employing multiple regression analysis, the study evaluates the influence of interest rate, inflation rate, exchange rate, industrial production, and broad money supply on stock market performance. Results reveal that exchange rate and money supply significantly and positively affect NEPSE, while inflation and interest rates show a negative but statistically insignificant impact. The findings are expected to aid investors and policymakers in understanding economic drivers of market behavior in Nepal.

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4 Cites in Articles

References

  1. Nepal Research Department (2014). Macro Modeling Practices at Nepal Rastra Bank.
  2. Nai-Fu Chen,Richard Roll,Stephen Ross (1986). Economic Forces and the Stock Market.
  3. E Fama (1981). Stock returns, real activity, inflation, and money.
  4. Donatas Pilinkus (2010). MACROECONOMIC INDICATORS AND THEIR IMPACT ON STOCK MARKET PERFORMANCE IN THE SHORT AND LONG RUN: THE CASE OF THE BALTIC STATES / MAKROEKONOMINIAI RODIKLIAI IR JŲ ĮTAKA AKCIJŲ RINKOS INDEKSUI TRUMPUOJU IR ILGUOJU LAIKOTARPIU: BALTIJOS ŠALIŲ ATVEJIS.

Funding

No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

Ethical Approval

No ethics committee approval was required for this article type.

Data Availability

Not applicable for this article.

How to Cite This Article

Dr. Narayan Kattel. 2026. \u201cMacroeconomic Factors for Stock Return in Nepal\u201d. Global Journal of Management and Business Research - B: Economic & Commerce GJMBR-B Volume 25 (GJMBR Volume 25 Issue B2): .

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Issue Cover
GJMBR Volume 25 Issue B2
Pg. 65- 66
Journal Specifications

Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

Keywords
Version of record

v1.2

Issue date

November 25, 2025

Language

English

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Published Article

This study examines the relationship between key macroeconomic variables and the stock market return in Nepal, particularly focusing on the NEPSE Index. Using time series data from 2014 to 2023 and employing multiple regression analysis, the study evaluates the influence of interest rate, inflation rate, exchange rate, industrial production, and broad money supply on stock market performance. Results reveal that exchange rate and money supply significantly and positively affect NEPSE, while inflation and interest rates show a negative but statistically insignificant impact. The findings are expected to aid investors and policymakers in understanding economic drivers of market behavior in Nepal.

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Macroeconomic Factors for Stock Return in Nepal

Dr. Narayan Kattel
Dr. Narayan Kattel

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