IMPACT OF FOREIGN DIRECT INVESTMENT (FDIs) ON INDIAN STOCK MARKET

The international investment for Indian capital market is predominantly sourced through Foreign Direct Investment (FDI) for primary market and Foreign Institutional Investment (FII) for secondary market. The benefits of stability, productivity and control make FDI a preferable investment avenue for any developing economy. This paper attempts to study the trends of FDIs and Indian capital market as revealed by the BSE SENSEX AND NSE NIFTY. The study also examines whether there exists significant relationship between fund flow FDIs and Indian stock Market (NSE-CNX NIFTY and BSE SENSEX). The data required for the study are drawn from secondary sources. Statistical tools like Karl Pearson’s correlation coefficient, standard deviation and regression are used to derive meaningful conclusion