Relationship between Foreign Direct Investment and Stock Market Indices in India

Abstract: The study investigates the connection between FDI and Indian stock market indices. The study uses secondary data and it is descriptive. Data of FDI, S&P BSE Sensex and NSE Nifty 50 from the financial year 2000 to 2022 have been taken from the reports of the Department for Promotion of Industry and Internal Trade (DPIIT), website of BSE and NSE respectively. Karl Pearson's correlation and Regression Analysis techniques has been used for the study. The study's findings demonstrate a statistically significant positive correlation between FDI & Sensex and FDI & Nifty, as well as a significant beneficial effect of FDI on the indices of the Indian stock market.

Keywords: FDI, S&P Sensex, Nifty 50, Stock Market.