INTERNATIONAL JOURNAL OF PROFESSIONAL STUDIES

The paper is an attempt to identify which macro-economic variable (USD/INR exchange rates or Inflation rates) influence which of the NSE indices (CNX Nifty, JUNIOR NIFTY, CNX 500, CNX Midcap, and CNX Smallcap) in India. Second part of the study is an attempt to evaluate if all the variables taken into account to conduct the study are significantly positively related or not. Monthly data ranging from 2009-2014 is considered. Primary hypothesis evaluates that whether the performance of NSE indices is dependent on the given indicator or not. For establishing the relationship, Correlation and Regression Analysis has been used by using SPSS.

Keywords: NSE indices; currency exchange rates; Durbin-Watson test