IMPACT OF FDI ON INDIAN CAPITAL MARKETS
Keywords:FDI, Sensex, Nifty, Capital Market.
Foreign Direct Investment (FDI) plays an essential successive role in the economic development of both advancing and advanced countries. Unprecedented neo-globalizations have witnessed doubledigit economic increasing prosperity resulting in ferocious competition and accelerated pace of improving innovations. An immense number of the nations are integrated and pursuing their international operations due to foreign direct investment. Rapid developing economies like China, Singapore, Korea, etc. have registered splendid increases on the set of FDI. FDI offers a get entry to foreign capital; however, those also allow providing the most modernized technologies to be had, numerous exceptional kinds of equipment of innovations. The government now plays a critical role in drafting and implementing various growth policies relating to FDI inflows.
The government's FDI policies would serve as an incentive for foreign investors to come to India. Hence, FDI inflow will contribute to our economic growth and also impact the Indian capital market. The study examines the effect of foreign direct investment on the Indian capital market. The study is based purely on secondary sources of data, 19 years of data used from 2001 to 2019, and used various statistical instruments like Coefficients of correlation and regression methods. Sensex and Nifty reflect the Indian capital market, hence used to investigate the effect. The paper concludes that the flow of FDI was affluent between 2001 and 2019, and the flow of FDI in India defines the pattern of the Indian capital market.