Ikigai Data Solutions

The stock market serves as a crucial indicator of economic health, influencing investment decisions, corporate strategies, and overall financial stability. Accurate prediction of stock market indices is essential for investors, policymakers, and financial analysts alike. In this project, we aim to analyze the impact of various independent variables on the Nifty100 index.

Objectives:

• Investigate the individual and collective impact of the chosen variables on the Nifty100 index over the last 10 years.

• To examine the long-run and short-run relationships between these parameters and the NIFTY 100 index

• To provide insights and recommendations for investors and policymakers.

Methodology:

1. Data Collection: Collected monthly data for FII, DII, Exchange Rate, CPI, IIP, Inflation, SP500 and NIFTY100 for the last 10 years.
2. Preprocessing: Performed data cleaning to handle missing values in the dataset.
3. EDA: Performed exploratory data analysis to understand the relationship between the independent variables and the target.
4. Modelling: Fitted an OLS model to predict NIFTY100 movements using our independent variables

Results:

–EDA

• Exchange Rate was converted to log scale before analysis.
• Strong positive relationship between  SP500, Exchange Rate, Consumer Price Index, Index of Industrial Production and the NIFTY 100 index while a weak positive relationship between DII Net, Inflation and NIFTY100.
• Weak negative relationship between FII Net and the NIFTY 100 index

Welcome to WordPress! This is a sample post. Edit or delete it to take the first step in your blogging journey. To add more content here, click the small plus icon at the top left corner. There, you will find an existing selection of WordPress blocks and patterns, something to suit your every need for content creation. And don’t forget to check out the List View: click the icon a few spots to the right of the plus icon and you’ll get a tidy, easy-to-view list of the blocks and patterns in your post.

Welcome to WordPress! This is a sample post. Edit or delete it to take the first step in your blogging journey. To add more content here, click the small plus icon at the top left corner. There, you will find an existing selection of WordPress blocks and patterns, something to suit your every need for content creation. And don’t forget to check out the List View: click the icon a few spots to the right of the plus icon and you’ll get a tidy, easy-to-view list of the blocks and patterns in your post.

Welcome to WordPress! This is a sample post. Edit or delete it to take the first step in your blogging journey. To add more content here, click the small plus icon at the top left corner. There, you will find an existing selection of WordPress blocks and patterns, something to suit your every need for content creation. And don’t forget to check out the List View: click the icon a few spots to the right of the plus icon and you’ll get a tidy, easy-to-view list of the blocks and patterns in your post.

Welcome to WordPress! This is a sample post. Edit or delete it to take the first step in your blogging journey. To add more content here, click the small plus icon at the top left corner. There, you will find an existing selection of WordPress blocks and patterns, something to suit your every need for content creation. And don’t forget to check out the List View: click the icon a few spots to the right of the plus icon and you’ll get a tidy, easy-to-view list of the blocks and patterns in your post.

Welcome to WordPress! This is a sample post. Edit or delete it to take the first step in your blogging journey. To add more content here, click the small plus icon at the top left corner. There, you will find an existing selection of WordPress blocks and patterns, something to suit your every need for content creation. And don’t forget to check out the List View: click the icon a few spots to the right of the plus icon and you’ll get a tidy, easy-to-view list of the blocks and patterns in your post.