Stock prices, inflation, and output in India: An empirical analysis

This study focusses on the negative relationship between inflation and stock returns (the puzzle of fisher hypothesis). Fama hypothesis examined the relationship between macroeconomic variable and stock return and found the strong relationship between the real output and stock prices. This study revisits Fama's hypothesis from the period 1990M1 to 2016M6 for emerging country perspective. The results documented that there is a significant negative relationship between inflation and output whereas positive between stock price and output.