The PDF file you selected should load here if your Web browser has a PDF reader plug-in installed (for example, a recent version of Adobe Acrobat Reader).

If you would like more information about how to print, save, and work with PDFs, Highwire Press provides a helpful Frequently Asked Questions about PDFs.

Alternatively, you can download the PDF file directly to your computer, from where it can be opened using a PDF reader. To download the PDF, click the Download link above.

Fullscreen Fullscreen Off

Foreign investment has become a striking measure of economic development in both developed and developing countries. Foreign investment was introduced in 1991 under Foreign Exchange Management Act (FEMA). Now the developing countries, including India, are witnessing changes in the composition of capital flows in their economies because of the expansion and integration of the world equity market. The flow of foreign capital is playing a significant role in the development of Indian stock markets. Since Indian capital market is vast and hence attract investors as their investment destination. FDI and FII thus have become instruments of international economic integration and stimulation. The flow of FDI and FII is increasingly seen as an important cause of stock market volatility. This state of affairs has propelled researchers to study the extent of relation between foreign capital flows and stock market volatility. In this context, an attempt is made to study the impact of FDI and FII flow on Indian Stock market (BSE Sensex and NSE Nifty). The study covers the time horizon of 10 years from 2005-06 to 2014-15.


FDI, FII, BSE Sensex, NSE Nifty.
Font Size