JEBIS: Jurnal Ekonomi dan Bisnis Islam Volume 7, No.1, January – June 2021 p-ISSN : 2442-6563 e-ISSN : 2525-3027 Page 148 – 162 Available online at https://e-journal.unair.ac.id/JEBIS doi: 10.20473/jebis.v7i1. 25921 REACTION OF ISLAMIC STOCK MARKET TO MACROECONOMIC VARIABLES: A STUDY OF INDIA AND INDONESIA Mohammad Irfana Salina Kassimb Sonali Dhimmarc Mohd Zahidd Nasrul Fahmi Zaki Fuadie aDepartment of Management Studies, CMR Institute of Technology, Bengaluru, India b Institute of Islamic Banking and Finance (IIiBF), International Islamic University Malaysia cSchool of Business, Auro University, India dDepartment of Management, Rajiv Academy for Technology and Management, India eEconomy and Islamic Business, Walisongo State Islamic University, Indonesia Email:
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[email protected] ARTICLE HISTORY ABSTRACT Received: India and Indonesia are among the world-largest democracies, having a 13 January 2021 strong international presence through involvement in various economic Revised and intergovernmental organizations such as in the E7 countries and G20 8 April 2021 countries groups. This study aims to identify the impact of Accepted: 31 May 2021 macroeconomic variables on the Islamic stock markets of India and Online available: Indonesia. Two Islamic stock market indices are considered: the Indian 30 June 2021 Bombay Stock Exchange (BSE) Shariah Index and the Indonesian Jakarta Islamic Index (JII). At the same time, the macroeconomic variables are Keywords: foreign direct investment (FDI), import, export, gross domestic product BSE Shariah, (GDP), broad money (M3), and exchange rate (ER). The study adopts Jakarta Islamic Index, panel regression analysis on yearly data covering the period from 2011 Macroeconomic to 2020.