I n t e r n a t i o n a l J o u r n a l o f M a n a g e m e n t F o c u s | 11 THE IMPACT OF INFLATION, INTEREST RATES AND GDP ON STOCK PRICES-A COMPARATIVE ANALYSIS Mr. Vishwas R, PG Research Scholar, Department of Management Studies, Global Academy of Technology, Bengaluru – 560 098 Dr. S. Gokula Krishnan, Associate Professor, Department of Management Studies, Global Academy of Technology, Bengaluru – 560 098 ABSTRACT: This study analyzes the relationship between macroeconomic variables and stock prices in selected industries, identifying major variables and quantifying their impact. Findings show that interest rates, inflation, and GDP significantly affect stock prices, varying by industry and company. Recommendations advise considering macroeconomic variables in investment and policy decisions. This study highlights the importance of macroeconomic variables in determining company performance and stock prices, providing a basis for further research. Key words: Inflation, Interest rates, GDP rates, Share prices, Investors. I. INTRODUCTION This project aims to identify major macroeconomic variables that impact stock prices, quantify their impact, and provide recommendations for investors and policy makers. Selected industries represent different sectors and are important in the economy. Results will provide insights into the impact of macroeconomic variables on stock prices, valuable for investors, stakeholders, and policy makers. II. REVIEW OF LITRATURE Kalam (2020) found that macroeconomic variables, including GDP, IR, INF, ER, and FDI, significantly influence the returns of the Malaysian stock market. The study used multicollinearity regression analysis and unit root test to analyze the relationship between macroeconomic variables and stock market returns. Nur Alam (2020) analyzed the impact of macroeconomic characteristics on stock market performance in five South Asian nations using regression analysis and granger causality. The study found both positive and negative associations between these characteristics and stock market returns. Kumar (2019) investigated the relationship between macroeconomic indicators and stock market performance in India. The study aimed to predict the Indian stock market's behavior based on macroeconomic variables. Panel analysis and correlation analysis were used to examine the relationship between the variables. The study demonstrated how changes in macroeconomic conditions impact the stock market. KV (2019) conducted a study on the impact of domestic and international macroeconomic indicators on the movement of the stock market in a selected group of countries. The goal was to determine the effects of these variables on the development of the securities market. Acharya & Mahapatra (2018) conducted a study on selected industries in India to determine the impact of macroeconomic variables on share prices. The study used regression and correlation analyses to quantify the relationship between macroeconomic factors and share prices. The study aimed to discern the influence of specific macroeconomic components on share prices in the Indian stock market. III. RESEARCH METHODOLOGY This study uses empirical research to measure the cause-and-effect relationship between variables. Secondary data on share prices of the top 3 companies in the sector and economic data were collected, and analysis was conducted using descriptive statistics, correlation, regression, and causality. The study utilizes a descriptive research design to understand how macroeconomic variables affect share prices of selected companies. The purpose of this design is to describe the influence of independent variables on the dependent variable. 1. Statement of problem This study addresses the problem of investors seeking to make safe and profitable investments in the stock market. By considering only internal factors, investors may not achieve their desired returns. Changes in macroeconomic indicators can also affect stock prices. The study aims to help investors understand the volatility of share prices.