INVESTIGATING THE IMPACT OF FDI ON INDIAN STOCK MARKET: A STUDY ON SENSEX

Published: 12 May 2022| Version 1 | DOI: 10.17632/tc8dxm5fwf.1
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Description

The flow of Foreign Direct Investments (FDI) in India has emerged as an attractive aspires for foreign investors. FDI is one of the noteworthy players in the Indian stock market. It has become an outstanding appraise of economic growth resulting in fierce competition and accelerated pace of innovation in both developed and developing countries. An attempt has been made in the present paper to investigate the relationship between FDI and Sensex using statistical measures like correlation coefficient and multiple regression analysis. Sensex is considered as the representative of stock market. The study is conducted using yearly data on BSE Sensex and FDI inflows over a period of 13 years starting from 2000-01 to 2012-13. The study concludes that Flow of FDIs determines the trend of Indian stock market. It provides the evidence of significant positive correlation between FDI and Sensex and effects on Indian Stock Market.

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Institutions

West Bengal State University, Maharaja Manindra Chandra College

Categories

Multiple Regression

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