A Study on the Impact of Currency Fluctuation on FIIs Net Equity Investment & Indian Capital Market (BSE, NSE)
International conference, Parul Group of Institutes on 5-7 January, 2012. ISBN-978-93-81361-78-8
9 Pages Posted: 7 Jun 2019
Date Written: January 8, 2012
The last twelve months have seen the Indian Rupee (INR) soaring to new highs against the Dollar (USD), and subsequently falling to new lows. This has been a key concern, with the INR rising notably from around INR 46.62/$ level in January 2010 to INR 52.26/$ currently. The dynamic linkage between exchange rate and stock prices is important from the viewpoint of recent large cross-boarder movement of funds. The present study focus on the effects of exchange rate fluctuation (Rs/$) on various segments of the Indian financial markets over the last 2 years during the global financial crisis. Using daily data from January 2010 to December 2011, it is found that there is no significant positive correlation between Rs/$ exchange rate and FIIs Net equity investment, BSE return and NSE return.
Keywords: Exchange rate, Regression, Stationary data
JEL Classification: G14
Suggested Citation: Suggested Citation