Foreign Capital Inflows (FII and FDI) and its Impact on BSE Sensex
Keywords:
BSE (Bombay Stock Exchange), FDI (Foreign Direct Investment), FII (Foreign Institutional Investor)Abstract
A Developing country like India has emerged as one of the favored destination for foreign investments like FDI and FII. The study makes an effort in order to investigate the relation between foreign capital (FDI and FII) and the Indian stock market (BSE Sensex) between the years 2000 to 2017. Study makes use of the statistical tools such as Karl Pearson Correlation test as well as the Multiple Regression Model to understand the relations between FDI, FII and BSE Sensex in a better way. The correlation from the study shows that there is a strong positive correlation between FDI and Sensex and also a statistically insignificant relationship between FII and Sensex. Further Multiple Regressions shows that there is an impact of FDI and FII on the BSE Sensex.
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