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In recent times stock market is considered as the barometer of the economic performance of a country. The potential of the firms listed in the stock market is reflected in the stock index. It is expected that the performance and the pace of economic growth of the economy is reflected in the stock market movements. The financial analysts, macro economists and researchers look upon to the macroeconomic trends to analyze and interpret the stock market indices. Thus in order to evaluate the performance of the stock markets, it is essential to understand the movements of the economy.