IMPACT OF INCOME ON MARKET CAPITALIZATION W.R.T. INDIA BULLS

Abstract

The capital market plays an essential role in the growth of commerce and industry which ultimately affects the economy of the country to a large extent. This is the rationale that the industrial bodies, government advisors and even the central bank of the country keep a close eye on the activities of the stock market. This paper explores the relationship between the stock market development and economic growth in India. We investigated the stock market development and economic growth relationship by using the two major measures of stock market development, namely: size of the market and liquidity prevalent in the market in terms of market capitalization