1Ph. D Research Scholar, Avinashilingam School of Management Technology, Avinashilingam Institute for Home Science and Higher Education for Women, Coimbatore
2Assistant Professor (SS), Avinashilingam School of Management Technology, Avinashilingam Institute for Home Science and Higher Education for Women, Coimbatore
*Corresponding author: Bhuvaneshwari. D can be contacted at: 14.bhuvi@gmail.com
Online published on 7 June, 2019.
The present study is an attempt to find the cointegration and causality among Indian stock prices and Foreign Direct Investment (FDI) equity inflows to India. The CNX Nifty stock prices and FDI equity inflows from April 2011 to March 2016 are considered as sample data for this study. In this research, Augmented Dickey-Fuller unit root test, Pearson's correlation test, Johansen's cointegration test and Granger causality test are applied to analyse the stationarity, relationship, cointegration and causality between stock prices and FDI equity inflows respectively. From the analysis, it is concluded that there exist significant positive correlation and long-run equilibrium relationship between the time series data and it is further inferred that changes in Indian stock prices are found to lead the changes in FDI equity inflows to India in the short-run period.
Stock Prices, FDI Equity Inflows, Augmented Dickey-Fuller Unit Root Test, Pearson Correlation Test, Johansen Cointegration Test and Granger Causality Test
