Abstract
Stock market plays a vital role in growth and development of a country and also acts as a most important pillar of an economy. This research attempts to investigate the relationship and influence of FII on the National Stock Exchange’s sectoral market indexes. To check the stationarity of the series ADF is used while regression is used to find out the impact of FIIs on the sectors of NSE. To measure the causality between the two, Granger causality test is applied. A comparative analysis of monthly and quarterly data has been done from 2006 to 2020. The paper concluded that FIIs is having significant relationship with sectoral indices. The Granger causality test found that FIIs have unidirectional causality relationship with energy, financial services, Infrastructure and MNC and no causal relationship with Bank, India consumption, Metal, PSE, and service sector using quarterly data.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.