Asked Oct 3, 2019

How does GDP growth and capital inflows affect the performance of equity markets in the new millenium?


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Affect of GDP growth on performance of equity market:

GDP is total amount of goods and services produced within a country.It includes all of public and private outlays, investments, export less import that occur within a country.

There is a correlation between GDP growth and stock market Returns. In theory, increase in stock market should match the GDP growth. Economy of a country leads to company’s profits which leads to EPS , that ultimately determines the pri...

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