“A Study on Volatility and Its Impact of Fdi With Reference to Major Indices in Indian Capital Market”

Foreign Direct investors have gained a significant role in Indian stock markets, 21st century shows real dynamism of stock market and the various benchmarking of BSE and NSE Indices in terms of highest peaks and sudden falls in market. This paper examines the level of contribution of Foreign Direct Investment in Various Indices of BSE and NSE. Also attempt has been made to identify the behavioral pattern of FDI during the period of April 2009 to March 2014 and examine the volatility of Various Indices due to FDI. The data for the study has been collected and uses the information obtained from the secondary resources like Bulletins of Reserve Bank of India, publications from Ministry of Commerce and BSE and NSE Websites. We have made an attempt to explain the impact of Foreign Direct Investment on stock market in Indian Economy. Also attempts to identify the correlation between FDI and Various Indices of BSE and NSE by the Karl Pearson’ Coefficient of correlation test.