Indian Stock Market Behavior Unveiled: Macro Factors Impact Returns
Asset pricing models help measure and reward risk in investments. The Capital Asset Pricing Model (CAPM) may not fully explain stock returns in India due to other economic factors. A study on fifty stocks in India's National Stock Exchange found that the Arbitrage Pricing Model (APM) is also important in understanding stock returns. The study showed that macroeconomic variables significantly impact the returns of different securities in Indian capital markets.