Indian Stock Market Growth VS Global Uncertainty: An Empirical Analysis
Article Sidebar
Main Article Content
The Indian stock market has demonstrated strong resilience despite ongoing global economic uncertainty caused by geopolitical conflicts, inflationary pressures, and monetary tightening. This study examines the relationship between Indian stock market performance and global uncertainty during the period 2024–2026. Using secondary data from government reports, financial publications, and academic literature, the study evaluates the role of domestic macroeconomic factors, foreign institutional investment flows, and policy stability. The findings indicate that while global uncertainty affects short-term volatility, India’s strong domestic demand, robust institutional framework, and increasing participation of domestic investors contribute to sustained long-term growth. The study concludes that India is gradually achieving partial decoupling from global financial shocks.
Downloads
References
Aggarwal, K., & Saradhi, V. R. (2023). Causality between stock market, domestic and global economic policy uncertainty: Evidence from India. The Indian Economic Journal, 71(2), 1–20. https://doi.org/10.1177/00194662221137829
Bhattacharjee, A., Nandy, M., & Lodh, S. (2024). COVID-19 and persistence in the stock market: A study on a leading emerging market. International Journal of Disclosure and Governance, 22, 520–531. https://doi.org/10.1057/s41310-024-00250-7
Bisiriyu, S. O. (2025). Economic policy uncertainty and stock market performance in emerging economies. Journal of Financial Stability Studies, 12(2), 45–60.
Bisiriyu, S. O., Ismail, N. B. M., & Ramachandran, R. (2025). Highs, lows, and uncertainty: A deep dive into India’s stock market and policy uncertainty. Discover Sustainability, 6, 1024. https://doi.org/10.1007/s43621-025-01693-w
Deloitte. (2025). India economic outlook 2025. Deloitte Insights.
Economic Times. (2026). Market volatility and global uncertainty. The Economic Times.
Government of India. (2025). Economic growth report. Press Information Bureau.
Government of India. (2025). Economic survey and growth report. Press Information Bureau.
HSBC Asset Management. (2025). India insights report. HSBC.)
International Monetary Fund. (2025). World economic outlook. IMF Publications. https://doi.org/10.5089/9781513599999.081
Kalra, N., & Gupta, G. (2023). Impact of economic policy uncertainty on the Indian stock market: An empirical investigation. Indian Journal of Finance, 17(3). (DOI not available)
Kothari, C. R. (2019). Research methodology: Methods and techniques (4th ed.). New Age International.
Maharana, N., Panigrahi, A. K., & Chaudhury, S. K. (2024). Volatility persistence and spillover effects of Indian market in the global economy: A pre- and post-pandemic analysis. Journal of Risk and Financial Management, 17(7), 294. https://doi.org/10.3390/jrfm17070294
Maruthi, A. (2025). India’s economic resilience amid global uncertainties. Journal of Economic Policy, 8(1), 30–42.
Reuters. (2026). Foreign investor outflows in Indian equity markets amid global uncertainty. Reuters News Agency.
Reserve Bank of India. (2025). Annual report 2024–25. RBI Publications.
Sengupta, R., Bhattacharjee, K., & Biswas, D. D. (2024). Empirical estimation of tail risk: Sectoral evidence from India’s stock market.
Sharma, S., & Bangur, P. (2024). A literature review on political uncertainty and stock market behaviour. Asian Journal of Comparative Politics, 9(2), 291–307. https://doi.org/10.1177/20578911231170436
Sharma, S., et al. (2024). Asymmetric nexus between economic policy uncertainty and the Indian stock market. Quarterly Review of Economics and Finance, 93, 91–101. https://doi.org/10.1016/j.qref.2023.05.002
Zhang, X., et al. (2024). Towards an era of multi-source uncertainty: A systematic and bibliometric analysis. International Review of Financial Analysis, 95, 103411. https://doi.org/10.1016/j.irfa.2024.103411

This work is licensed under a Creative Commons Attribution 4.0 International License.
All articles published in our journal are licensed under CC-BY 4.0, which permits authors to retain copyright of their work. This license allows for unrestricted use, sharing, and reproduction of the articles, provided that proper credit is given to the original authors and the source.