Vol. 2, Issue 2, Part A (2016)

Abstract
Predicting movements in the Bombay Stock Exchange (BSE) is perhaps one of the hardest exercises in financial studies as it has many variables affecting its movement. In this paper I have taken two macro variables i.e. Gross Domestic Product & Exchange Rate and collected 12 months secondary data for the year 2014 from the website of RBI and Sebi. The data collected has been analyzed by using spss through correlation, regression and ANOVA in order to draw meaningful information. The findings show that GDP is the significant predictor and Exchange Rate is not the significant predictor of BSE Sensex.