1Assistant Professor, Rajagiri Centre for Business Studies, Rajagiri Valley, Kakkanad, Cochin, Kerala, India
2Assistant professor, Department of Commerce, Government College, Thripunithura, Ernakulam, Kerala, India
Online published on 12 March, 2021.
Foreign Investment not only provides access to foreign capital but also facilitates domestic countries to avail the benefits of state-of-the-art technology, sophisticated skill sets, innovative practices and other complementary benefits. The policies formulated to strengthen the flow of foreign investment in to India enabled India to emerge as a potential destination for foreign investors. The present study was intended to find out the effect of Foreign Direct Investment and Foreign Institutional Investment- on the performance of Indian stock market, and was analysed on the basis of their effect on the proxies - BSE Sensex and CNX Nifty, the most popular stock market indices in India. Two models were developed in the study and were found to be statistically significant. Hence, it is concluded that International financial flows into India do havea significant effect on Indian stock market.
FDI, FII, Sensex, Nifty, Stock Market, Foreign Capital, International Financial Flow, Foreign Investor, Cross-Border Capital, Foreign Portfolio Investment
