Influence Of Changes Of FDI And FII Flows On Indian Stock Market

Abstract

The inflow of Foreign Direct Investment and Foreign Institutional Investors has become a strong impression of economic development in both developing and developed countries. The research paper found that values of all variables were higher than 5; it clearly indicates that the variables were non-normal found out by using the Jarque-Bera test. The study exclaimed that there is unidirectional relationship between FDI returns and the nifty returns found out by granger causality test and it explains that FDI helps to predict Nifty returns. Policy makers can make economic enhancing and growth possible based on the research made on economic performance.

Keywords: Foreign Direct Investment, Economic policy, Foreign, Cointegration and Causality

JEL Classification: O24, E6, E22, F21, R53