Abstract: Monetary policy is an essential tool for managing the economy. Monetary policy uses various tools like like Cash Reserve Ratio (CRR), Statutory Liquidity Ratio (SLR), Repo Rate, Reverse Repo Rate and Bank rate to control the money supply of the country. Stock market is related to monetary policy.  So, to know how stock market will move with the changes in different policy rates, this study is conducted.  To understand the impact of  monetary policy on different sectoral indices, nifty index this  research  is done. Nifty 50 & Sectoral indices fluctuation is influenced by the monetary policy of RBI. Any changes in the monetary policy has an impact on stock market returns and overall economy of the nation.  For understanding the impact, multiple regression analysis and Johansen co-integration test has been done. Time series data has been collected where the opening and closing price of the stocks has been collected and averaged on the particular date. According to multiple regression tools and using Johansen co-integration test it is found the monetary-policy tool impact on Indian Securities market.

 

Keywords: RBI Monetary policies, bank rate, repo rate, reverse repo rate, statutory liquidity ratio, MSF

| DOI: 10.17148/IARJSET.2022.9766