Determinants Of Foreign Exchange Rate and Its Impact on Performance of The National Stock Exchange

This study aims to investigate the impact of the foreign exchange rate on the National Stock Exchange indices. The NSE indices used for the study are Nifty 50, Nifty 500, Nifty Midcap 100, Nifty IT, Nifty Metal, and Nifty Pharma, and the exchange rate of Indian Rupees against the US Dollar is being studied. The study is based on secondary data from 2014 to 2024. Descriptive statistics, Regression, and Correlation analysis are used in the study. The data is taken monthly. The study shows that the Forex Reserve has the greatest impact on the USD/INR Exchange rate, followed by FDI inflows and the Crude Oil price. There is also a positive correlation between the USD/INR exchange rate and the Nifty 50, Nifty Midcap 100, Nifty 500, Nifty IT, Nifty Metal, and Nifty Pharma.