IMPACT OF MACROECONOMIC VARIABLES ON THE STOCK MARKET OF NEPAL: A REVIEW

This study examines how certain macroeconomic variables, such as remittances, money supply, exchange rates, and interest rates, affect stock market performance using literature from both the international and Nepalese contexts. This paper’s main goal is to use a literature evaluation to identify a new field of study from a Nepalese perspective. The analysis shows that money supply and remittances have a favorable impact on the stock market, whereas interest rates and exchange rates have a negative impact on the performance of the stock market. There isn’t agreement, though, on how each macroeconomic factor affects stock market performance because there is a wealth of literature both supporting and refuting these findings. As a result, a similar study can be expanded using a different approach using this set of variables in the context of Nepal, which could assist to clarify the literature and provide a better description of the performance of the Nepalese stock market.