Impact of GDP and FII on Stock Market: A Study in BSE and NSE in India

Keywords: GDP, FII, NSE, BSE, ADF test, Garner causality, Regression


The researchers studied the effect of GDP and FII on the working of the Indian Stock Market. The monthly details of GDP, FII, BSE and NSE are used to accomplish the study’s aims. To find out the findings, the Augmented Dickey Fuller (ADF) Test, Multiple Regression and Granger Causality Experiments have been used. Foreign portfolio investors were stationary at the level of GDP and GDP at the first gap. From the study, it is found that both the independent variables were significant on the dependent variable NSE and BSE. To check the causality relationship between GDP, FII and NSE, the BSE Granger causality model has been used. To find out the results, average closing prices of BSE and NSE for 15 years, i.e. from 2000-2015, have been collected. It has been observed that both GDP and FII possess a significant impact on the indices of BSE NSE. As per the findings, the Stock Market in India was efficient, considering these two variables and found a significant relationship during the study period.

Abstract views: 0 times
PDF downloads: 0 times