Correlation between fii’s and indian stock indices (NSE & BSE) (Study of first quarter of FY 2019-20)

Since the Globalization of Indian Economic Market in 1991 considerable amount of foreign inflows have been seen in the form of FDI and FII. This paper focuses on FII investment and it’s Co-relation with Indian Stock Indices i.e. Sensex(BSE) & Nifty(NSE). As Volatility is the level of fluctuation in the stock indices as the result of various internal as well as external factors, it would be ideal to have a correlation of it with the FII purchasing pattern. With a hypothesis in mind that FII purchased and Stock Market Indices have some degree of positive correlation among themselves during first quarter of Financial Year 2019-20; Statistical tools like Corelation, Standard Deviation are used to find the results.