(A Study On Impact of Fdi On Indian Stock Market-Angel Broking)

INTRODUCTION
The Multinational companies play a vital role in the changes of economic condition in a country.
The role, importance, impact and their investment strategies in foreign direct investment in India
(FDI) have played a vital role in the economic development of India. The foreign direct
investment in started in 2090s in India as it plays an important role in the development and
globalisation process. The FDI has helped in the growth of economy by its investment strategies,
the investments made in the emerging markets like telecommunication, transportation, automobile
industry, manufacturing industries and other major industries have brought enormous changes in
the economy.
The investment strategies used by the investors not helped the growth in the economy but also
have an impact on the positive growth in the relative sectors and other sectors like the living
standards have increased and the increase in the living conditions have give a life blood for the
growth of saving which ultimately turned in to another form of invest source where by we can
find the changes in the growth of the overall markets in all the sectors like food to manufacturing
etc. There is a cyclic development in the economy of India as the recent world wide recession has
no much effect on the economy in India. The emerging markets in India have provided the oxygen
for the existence of positive growth in the markets.
The investment strategies in India have a very interesting progress as the investment was on a
wide spread into different sectors and in to different industries and could gain a good amount of
attraction in each and every sector. The growth in textile industries, pharmacy industries
automobile industries communication industries and other industries has attracted the FDI at
positive level from its start. Apart from all these the role of government plays a vital role in
pooling the FDI and as India is the world’s largest democratic country with open markets and with
governing the markets in well structured rules it has placed a base platform for the investors to
find a safe place to invest without any much restrictions. The intellectual knowledge and well
known English language and the human resource and cost efficiency have shown a good result for
the FDI’s to find the best opportunity to invest and reach their expectations.
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IMPORTANCE OF THE STUDY
It is commonly known that capital flows in developing economies like India have risen sharply
and has, therefore become a self propelling and dynamic factor in the accelerated growth of
economies. The impassioned advocacy of increased FDI flows is based on the well worn
arguments that FDI is a rich source of technology and know how; it can stimulate the labor
oriented export industries of India, promote technological change in the industries and put India
on a higher growth path. The excitement of FDI needs to be based on analytical review of India’s
needs, requirements and potential to participate in huge investment flows.
The practical literature on the relationship between FDI and development is mixed. Despite a
number of studies and seeming contradictions, two consistent issues that repeatedly arise are:
What are the motivations for FDI flows into India?

What are the economic and social implications of FDI flows in India?
A detailed study of FDI in India requires an examination of the determinants and the impact of
FDI on Indian Economy. Studying FDI flows will help to assess the nature and the true extent to
which the Indian Economy has globalised.
The study takes a closer look at the structure of Foreign Direct Investments into India. It traces the
development of India’s economic policy regarding FDI and the resulting changes. The expansion
of FDI in India has been followed by a rapid economic growth and an increasing openness to the
rest of the world. It is equally important to understand why India has become one of the important
beneficiaries of FDI in the world and what drives the more recent progress of India towards FDI.
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OBJECTIVES OF THE STUDY
Keeping in view the importance of FDI in the development of economies and the dynamic nature
of the topic, the present study focuses on the following objectives.
The primary objective of this study is to review why India has been a preferred destination for
FDI and study the impact of FDI on the Indian economy.
The sub objectives of the study are
• To review the major reasons for attracting FDI;

• To analyze the investment strategies in selecting the right investment projects;
• To study if the FDI investments have contributed to the positive growth in the standard of
living;
• To study the impact of FDI investments on the culture of the country.
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SCOPE OF THE STUDY
However, a good way for them to survive is by offering FDI equity to

companies can individuals who would be interested in making huge capital investment.FDI
(foreign direct investment) in India is done in several ways. Investment can take place
through effective financial collaborations.
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RESEARCH METHODOLOGY OF THE STUDY
The study is both descriptive and analytical in nature. It is a blend of primary data and
secondary data.The primary data has been collected personally by approaching the online
share traders who are engaged in share market. The data are collected with a carefully
prepared questionnaire. The secondary data has been collected from the books, journals and
websites which deal with online share trading.
Source of data
Primary Sources: The primary data was collected through structured unbiased questionnaire
and personal interviews of investors. For this purpose questionnaire included were both open
ended & close ended & multiple-choice questions.
Secondary method: The secondary data collection method includes:

• Websites
• Journals
• Text books
Method Used For Analysis of Study
The methodology used for this purpose is Survey and Questionnaire Method. It is a time
consuming and expensive method and requires more administrative planning and supervision.
It is also subjective to interviewer bias or distortion.
Sample Size: 130 respondents
Sampling Unit: Businessmen, Government Servant, Retired Individuals
Statistical Tools: MS-excel and pie and bar diagrams are used to analyze the data.
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LIMITATIONS
• The study focuses on FDI in India only.
• There are many determinants which determine the FDI in India. All the aspects may not be
covered in detail in the limited time given.
• FDI policies are dynamic nature in nature and subject to change very often.
• The study is based on secondary research where the data may not be authentic in all the cases.
• Primary Research is not carried out during the project, which is a major drawback.
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REVIEW OF LITERATURE
Nayak D.N (2009) in his paper “Canadian Foreign Direct Investment in India:
Some Observations”, analyse the patterns and trends of Canadian FDI in India. He finds out
that India does not figure very much in the investment plans of Canadian firms. The reasons
for the same is the indifferent attitude of Canadians towards India and lack of information of
investment opportunities in India are the important contributing factor for such an unhealthy
trends in economic relation between India and Canada. He suggested
some measures such as publishing of regular documents like newsletter that would highlight
opportunities in India and a detailed focus on India’s area of strength so that
Canadian firms could come forward and discuss their areas of expertise would got long way
in enhancing Canadian FDI in India.
Balasubramanyam V.N Sapsford David (2012) in their article “Does India need a lot
more FDI” compares the levels of FDI inflows in India and China, and found that FDI in
India is one tenth of that of china. The paper also finds that India may not require increased
FDI because of the structure and composition of India’s manufacturing, service sectors and
her endowments of human capital. The requirements of managerial and organizational skills
of these industries are much lower than that of labour intensive industries such as those in
China. Also, India has a large pool of well – Trained engineers and scientists capable of
adapting and restructuring imported know – how to suit local factor and product market
condition all of these factors promote effective spillovers of technology and know- how from
foreign firms to locally own firms. The optimum level of FDI, which generates substantial
spillovers, enhances learning on the job, and contributes to the growth of productivity, is
likely to be much lower in India than in other developing countries including China. The
country may need much larger volumes of FDI than it currently attracts if it were to attain
growth rates in excess of 13 per cent per annum. Finally, they conclude that the country is
now in a position to unbundle the FDI package effectively and rely on sources other than FDI
for its requirements of capital.
Naga Raj R (2008) in his article “Foreign Direct Investment in India in the 1990s:
Trends and Issues” discusses the trends in FDI in India in the 1990s and compare them with
China. The study raises some issues on the effects of the recent investments on the domestic
economy. Based on the analytical discussion and comparative experience, the study
concludes by suggesting a realistic foreign investment policy.
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Morris Sebastian (1999) in his study “Foreign Direct Investment from India: 1964-83”
studied the features of Indian FDI and the nature and mode of control exercised by Indians
and firms abroad, the causal factors that underlie Indian FDI and their specific strengths and
weaknesses using data from government files. To this effect, 16 case studies of firms in the
textiles, paper, light machinery, consumer durables and oil industry in Kenya and South East
Asia are presented. This study concludes that the indigenous private corporate sector is the
major source of investments. The current regime of tariff and narrow export policy are other
reasons that have motivated market seeking FDI.
Resources seeking FDI has started to constitute a substantial portion of FDI from India.
Neither the “advantage concept” of Kindlebrger, nor the concept of large oligopolies trying to
retain their technological and monopoly power internationally of Hymer and Vaitsos are
relevant in understanding Indian FDI, and hence are not truly general forces that underlie
FDI. The only truly general force is the inexorable push of capital to seek markets, whether
through exports or when conditions at home put a brake on accumulation and condition
abroad permit its continuation.
Kulwinder Singh38 (2010) in his study “Foreign Direct Investment in India: A Critical
analysis of FDI from 1991-2010” explores the uneven beginnings of FDI, in India and
examines the developments (economic and political) relating to the trends in two sectors:
industry and infrastructure. The study concludes that the impact of the reforms in India on the
policy environment for FDI presents a mixed picture. The industrial reforms have gone far,
though they need to be supplemented by more infrastructure reforms, which are a critical
missing link.
Nirupam Bajpai and Jeffrey D. Sachs (2011) in their paper “Foreign Direct Investment
in India: Issues and Problems”, attempted to identify the issues and problems associated
with India’s current FDI regimes, and more importantly the other associated factors
responsible for India’s unattractiveness as an investment location. Despite India offering a
large domestic market, rule of law, low labour costs, and a well working democracy, her
performance in attracting FDI flows have been far from satisfactory. The conclusion of the
study is that a restricted FDI regime, high import tariffs, exit barriers for firms, stringent labor
laws, poor quality infrastructure, centralized decision making processes, and a very limited
scale of export processing zones make India an unattractive investment location.
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Chandan Chakraborty, Peter Nunnenkamp (2009) in their study “Economic Reforms,
FDI and its Economic Effects in India” assess the growth implications of FDI in India by
subjecting industry – specific FDI and output data to Granger causality tests within a panel co
-integration framework. It turns out that the growth effects of FDI vary widely across sectors.
FDI stocks and output are mutually reinforcing in the manufacturing sector. In sharp contrast,
any causal relationship is absent in the primary sector. Most strikingly, the study finds only
transitory effects of FDI on output in the service sector, which attracted the bulk of FDI in the
post – reform era. These differences in the FDI – Growth relationship suggest that FDI is
unlikely to work wonders in India if only remaining regulations were relaxed and still more
industries opened up o FDI.
Basu P., Nayak N.C, Vani Archana (2012) in their paper “Foreign Direct Investment in
India: Emerging Horizon”, intends to study the qualitative shift in the FDI inflows in India
in – depth in the last fourteen odd years as the bold new policy on economic front makes the
country progress in both quantity and the way country attracted FDI. It reveals that the
country is not only cost – effective but also hot destination for R&D activities. The study also
finds out that R&D as a significant determining factor for FDI inflows for most of the
industries in India.
The software industry is showing intensive R&D activity, which has to be channelized in the
form of export promotion for penetration in the new markets. The study also reveals strong
negative influence of corporate tax on FDI inflows.
To sum up, it can be said that large domestic market, cheap labour, human capital, are the
main determinants of FDI inflows to India, however, its stringent labour laws, poor quality
infrastructure, centralize decision making processes, and a vary limited numbers of SEZs
make India an unattractive investment location.
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INDUSTRY PROFILE
In India, FDI is considered as a developmental tool, which can help in achieving self-reliance
in various sectors of the economy. With the announcement of Industrial Policy in 1991, huge
incentives and concessions were granted for the flow of foreign capital to India. India is a
growing country which has large space for consumer as well as capital goods. India’s
abundant and diversified natural resources, its sound economic policy, good market
conditions and highly skilled human resources, make it a proper destination for foreign direct
investments.
As per the recent survey done by the United National Conference on Trade and Development
(UNCTAD), India will emerge as the third largest recipient of foreign direct investment
(FDI) for the three-year period ending 2016 (World Investment Report 2012). As per the
study, the sectors which attracted highest FDI were services, telecommunications,
construction activities, and computer software and hardware. In 1991, India liberalised its
highly regulated FDI regime. Along with the virtual abolition of the industrial licensing
system, controls over foreign trade and FDI were considerably relaxed. The reforms did
result in increased inflows of FDI during the post reform period. The volume of FDI in India
is relatively low compared with that in most other developing countries.
FDI plays an important role in economic growth of an economy. Literature on factors

determining FDI inflows into an economy shows that many factors influences inflows such as
market size, inflation, trade openness, interest rate, wage rate, business environment, etc. FDI
is related positively with real GDP and previous period FDI inflow but inversely related with
inflation. It showed that the macroeconomic instability in terms of inflation has been an
important factor which influenced the inflow of FDI in India in the post reform period.
A large number of factors are held responsible for FDI Inflow to India. Foreign Direct
Investment inflow made its entry in India for the first time during the year 1991-92 with the
aim to bring together the intended investment and the actual savings of the country.
Why India Needs FDI
❖ Offsetting the capital deficiency
❖ Acquiring advanced technology
❖ Gaining Production
❖ Promoting Exports
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FDI Culture In India
Many economists in the country have now realized the advantages of FDI to India. While the
achievements of the Indian government are to be lauded, a willingness to attract FDI has
resulted in what could be termed an “FDI Industry”. While researching the economic reforms
on FDI, it was discovered that there exists a plethora of boards, committees, and agencies that
have been constituted to ease the flow of FDI. A call to one agency about their mandate and
scope usually results in the quintessential response to call someone else. Reports from FICCI
and the Planning Commission place investor confidence and satisfaction at an all time high;
citizens too deserve to be clued in on the government bodies are doing. According to the
current policy FDI can come into India in two ways. Firstly FDI up to 130% is allowed under
the automatic route in all activities/sectors except a small list that require approval of the
Government. FDI in sectors/activities under automatic route does not require any prior
approval either by the Government or RBI.
The investors are required to notify the Regional office concerned of RBI within 30 days of
receipt of inward remittances and file the required documents with that office within 30 days
of issue of shares to foreign investors. All proposals for foreign investment requiring
Government approval are considered by the Foreign Investment Promotion Board (FIPB).
The FIPB also grants composite approvals involving foreign investment/foreign technical
collaboration.
Advantages of Foreign Direct Investment Inflows in India:
✓ FDI inflows raise the capital for investment. Foreign capital has taken over the domestic
capital in terms of purchasing issue. Domestic capital is usually used or invested in other
sectors of the Indian market.
✓ Foreign Direct Investment in greenfield ventures, has introduced technological

advancement and contemporary techniques for management in India, which the country
lacked badly before FDI made its entry.
✓ The inflow of foreign capital in India has opened up a plethora of options in the Indian
market by ensuring foreign capital shares which stabilizes the country's economy
✓ India ranks 19th in terms of foreign direct investment inflows, and has 1.4 percent shares
in FDI inflows among all other developing nations
✓ Increase in Domestic Employment/Drop in unemployment
✓ Investment in Needed Infrastructure.
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✓ Positive Influence on the Balance of Payments.
✓ New Technology and “Know How” Transfer.
✓ Increased Capital Investment.
✓ Targeted Regional and Sectoral Development
Disadvantages of FDI in India:
✓ Industrial Sector Dominance in the Domestic Market.
✓ Technological Dependence on Foreign Technology Sources.
✓ Disturbance of Domestic Economic Plans in Favor of FDI-Directed Activities.
✓ “ Cultural Change” Created by “Ethnocentric Staffing” The Infusion of Foreign Culture ,

and Foreign Business Practices
India is potentially active in terms of investments and provides a galore of opportunities to

the foreign players into the market. Foreign companies who aspire to become a global player
would grab the opportunities, India provides in terms of investments. The foreign companies
enjoy the rights to set up branch offices, representative offices, and also carry out outsourcing
activities in terms of software developmental programmes in India. All these have opened up
innumerable options for the foreign investors to expand their businesses at a global level.
These are some of the factors which led to FDI Inflows in India.
Market Potential in India for Attracting FDI Inflows:
Over the years, FDI in India has become an inseparable and important aspect of the non-
resident Indians (NRI). NRI investment in India has registered a surge with the initiation of
globalization and liberalization. NRI investment in India has been increasing by leaps and
bounds with NRI venturing into different proposals of business in India. There is a
requirement for strategic investment guidance in order to ensure smooth flow of NRI
investment in India. The business in India gets impetus with better investment guidance, one
such site is that of OIFC, wherein one can ask the expert. While the official website of the
government give details of the amount of FDI in India about the particular sector or business
in India. The government has also cleared 12 proposals for FDI in India worth over US$
496.84 million. The major inflows are expected to be accounted for by KKR Mauritius
Cement Investments and Shriram City Union Finance.
NRI investment in India is focusing on the real estate, infrastructure and education business
in India, besides other segments. The business in India is witnessing new heights especially
on the back of the robust growth in the manufacturing sector and good monsoon. The FDI
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investment in India is also witnessing a boom in the automobile industry, with India being
stated as the seventh largest automobile producing country.
Additionally, the need to focus on the sustainable development and the concept of green
power is another important business in India receiving FDI. There has been a significant
increase in the interest shown and joint ventures (JV) being formed by foreign companies to
harness the non-conventional resources of India, thus attracting FDI India. Investment
guidance for doing business in India can also be subject to trend analysis of the NRI
investments. The FDI investment is considered one of the indicators to track which business
is showing a robust growth.
India is claimed to be the fifth largest economy across the globe and ranks third in the Gross
Domestic Product in the entire Asia, which is one of the most significant factors responsible
for FDI Inflows in India. India is also known to be the second largest country amongst all
other developing countries. Besides, India belongs to those rarest of countries, which offer
growth and earning opportunities through various industrial units. India offers maximum
opportunities for foreign investments, which have been a major cause behind the flourishing
economy of the country.
Investment Options For NRIs In India
The Indian economy has been on a continuous growth curve. This is providing the non-
resident Indians (NRIs) to explore multiple options to invest their funds in their home
country. The returns from India are considerably higher than those from the US or European
countries
Some of the investment options available to NRIs in India are:
• Investment in the Indian equities markets, including IPOs
• Investment in mutual funds
• Company fixed deposits and non-convertible debentures of companies
• Real estate investments
• Government securities
• National Savings Certificates issued by post offices in India
• Deposits in Indian banks
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Both NRIs and PIOs are offered several facilities by the Government of India. NRIs are
Indian citizen who resides outside India, while PIO (Person of Indian Origin) refers to an
individual who at any time held an Indian passport, or any of whose parents or grandparents
was a citizen of India. While NRIs are allowed to invest in all sectors when Indian citizens
are allowed, PIOs are allowed to invest only in non-agricultural sectors. A ’24% Scheme’
allows Indian companies, except those engaged in agricultural activities, to issue up to 24%
of their shares and debentures to NRIs with repatriation benefits.
Investment options in India are plenty. Investing money ultimately depends on the risk
appetite of the person who is investing. There are so many options and it is difficult to choose
the best one because most of them are giving good returns. Some good investment options are
given below.
1. Bank Fixed Deposits (FD):
Fixed Deposit or FD is a good investment option today. It gives up to 8.5% annual return and
depends on the bank and period of investment. Minimum period is 17 days and maximum 5
years and above. Senior citizens get special interest rates for Fixed Deposits. This is
considered to be a safe investment because all banks operate under the guidelines of the
Reserve Bank of India.
2. Stock Market:
Investing in share market is another investment option to get more returns. But share market
investment depends on market conditions. Higher risk will get you higher returns. Before
investing you should have a good knowledge about its operation.
3. Mutual Funds:
Mutual Fund is a type of collective investment method by which many people deposit their
money in a fund and invest in various securities like stock, bonds or cash investments to get
good returns. For individual investors it is very easy type of investment because someone else
manages their funds, takes care of accounts and invests money over many different available
securities.
4. National Saving Certificate (NSC):
NSC is a safe investment related with the Government. Lock in period is 6 years. Minimum
amount is Rs130 and there is no upper limit. You get 8% interest calculated twice a year.
NSC comes under Section 80C, so you will get an income tax deduction up to Rs 1, 00,000.
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5. Gold:
Gold has been the perfect tool to beat inflation. Real estate and shares beat gold on capital
appreciation. Real estate and shares have given returns of about 14% over inflation since
1979 (the year the index called Sensex was formed). But as a short term investment option,
however, gold is a very strong investment tool, compared to shares which are highly volatile.
Gold does not carry much risk at least in India, as we hardly see deflation in the gold price.
Liquidity option in gold is always 130%, compared to all other investments. At any period of
time gold can be converted into cash.
6. Real estate:
Real Estate in India is one of most successful investments in the last few years of Indian
history. Indian real estate has huge potential demand in almost every sector like commercial,
educational, housing, hospitality hotels, retail, manufacturing, healthcare etc. Real Estate
industry in India has reached a highest point at this period. It has been opened to foreign
investors also. This is the reason why many foreign investors are investing huge amounts of
money in this sector and making sizeable profit.
7. Equity:
Those who have the appetite to take risk they always can invest in equity market. Equity
market is also a good way to beat inflation. It is very difficult to neglect the enormous profits,
which have been earned by the investors in the equity investment market of India over past
few years. There are several interesting and new areas, where venture capital and private
equity firms are looking aggressively to enjoy the advantages.
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Investment Opportunities for Overseas Indians
The business in India is a new wave of trend being followed globally. Investing in India’s
economy is becoming a big attraction for the foreign investors especially due to the booming
Indian economy and the staggering economy of the developed countries. The investment
guide is another tool with respect to providing services to the Indian community. India
Connect is one of the favoured slogan for forming the connection with non-resident Indians
(NRIs). Ministry of Overseas takes out a monthly newsletter India Connect targeting the
Overseas Investors, NRIs etc to come forward to do business in India. Through its knowledge
partners, it provides part of the investment guide as it provides information and also explains
as and to set up a business in India.
The robust Indian economy has become a trend to follow on and the business investments
being attracted are becoming part of the rising economic bandwagon to prosperity. The vast
investment opportunities available and the positive investment climate in India have become
a part of every business entrepreneur’s life. The Ministry of Overseas Indian Affairs has set
up an Overseas Indian Facilitation Centre (OIFC) as a not-for-profit-trust, in partnership with
Confederation of Indian Industry (CII) to promote investment opportunities amongst the
overseas Indians. OIFC also assists the States in India to project investment opportunities to
Overseas Indians and help them make business investments. The India Connect concept is
most favoured as India has always been a great fascinating destination for the foreign players
especially with the large population base with a huge opportunity to do business investments.
The developing countries have been acclaimed as the forerunners of the global economy and
in its revival. It is important to understand that India is ready and is an indistinctively
important destination for foreign direct investments (FDI) in India and to make business
investments. The recent remarks by Barack Obama, the US President that India is not simply
emerging but has already emerged is in itself self-explanatory to the India’s potential. The
investment guide to do business in India is being provided with various forms of services –
handholding services is one of them. It is such remarks by prominent personalities, which
strengthen the claims and the prestige of India. Furthermore, France’s support for India to
obtain a permanent seat at United Nations Security Council (UNSC) portrays the importance
of India. It thus, becomes important for various organisations providing investment guidance
to come forward and to help understand business in India. The services such as handholding
services help investors to do business in India and provide investment guide from conception
to completion of the project. Such services support companies of all countries interested in
business investments to record FDI in India etc. The States are being encouraged to actively
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promote their investment opportunities/ projects/ business investments. Some of the most
favored destinations being Chennai, Hyderabad Bengaluru etc. The various services offered
by the States to assist the non-resident Indians (NRI’s), overseas Indians and high networth
individual’s (HNI) potray the interest of the respective governments to assist as well as attract
FDI in India and indirectly help in developing the state’s infrastructure. Such services help in
creating a conducive environment for FDI in India.
Increased Standard Of living Through FDI In India:
The country which accepts FDI will benefit by increased job opportunities, higher standards
of living and better infra structure. The investing country or company usually has a 13% stake
in the enterprise making it eligible to multiply the money invested. Investors prefer FDI as
there is always a higher chance that the FDI investment will return higher than any
investment made in the home country.
It is the policy of the Government of India to attract and promote productive FDI in activities
which significantly contribute to industrialization and socio-economic development. FDI
supplements domestic capital and technology. FDI is boosting growth in the country via two
channels.
1. Adds to the capital-stock of the country, thereby allowing a more optimal production of
goods and services. Thus, the result of the relative inputs of labor and capital is maximized.
2. The other channel is FDI shaping the domestic economy by encouraging clustering,
creating competition-driven productivity gains, and exposing local firms to foreign
technology and best business practices.
Moreover, India’s tariff and non-tariff barriers may protect some domestic industries in the
short term, but in the long term will limit foreign direct investment (FDI) and imports that
can enhance innovation within Indian partner companies, and increase the standard of living
for India’s people.
There had been a marked rise in their per capita incomes which were enough to provide good
standards of living to India’s entire population because of FDI inflows to the country.
High tariffs are not merely a barrier to trade and limit FDI but are potentially distortive of
competition by restricting the entry of new players into the domestic market. The objective of
competition policy is to ease entry and exit conditions by removing some of the government
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erected barriers such as trade restrictions which could be one of the main institutional barriers
to domestic competition.
The need to lower tariffs and the need for liberalising the domestic investment regime have
been discussed at various WTO Ministerial Meetings. It is often argued that such policies or
protectionist measures are in line with the industrial policy necessary to protect the domestic
industries and promote economic growth of a country. The purpose of industrial policy is to
establish a course of action to support the achievement of development goals that depend
upon the performance of the domestic manufacturing and industrial sectors. Industrial policy
is usually justified on the grounds that market failures impede the proper functioning of free
markets and thus prevent the ability of countries to attain development targets thus calling for
government intervention to overcome such market failures. However, too much government
intervention may hinder competition by creating barriers to entry as mentioned above and
also promote inefficiencies and have an adverse impact on consumer welfare.
Main Reasons Why India Attracts FDI:
India needs inflows of capital to drive investment in infrastructure, a lack of which is often
cited as restricting the country’s economic growth. Investment is also needed to expand
capacity and technology in sectors such as autos and steel, as well as to offset a big current
account deficit.
India offers an excellent case study of the effects of FDI and the differential ability of policy
makers to attract it for two main reasons. First, India’s federal system allows different regions
to respond to the same shocks and problems in different ways. This provides an excellent
basis for comparative study. Second, the country as a whole was relatively closed to foreign
direct investment until the 1991 liberalizing reforms. The balance of payments crisis and IMF
conditional reforms created a terrific natural experiment in how liberalization effects growth.
Though the central government was instrumental in opening up the economy, state
governments exert considerable and often determinative influence over the allocation of FDI.
Some of the other main reasons of why India attracts FDI are:
1. To achieve transfer of technology and management techniques
2. To reduce dependency on aid
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Investment Strategies For Overseas Investment In India:
Bidding adieu to the global recession and a rather unaffected economy of Asian markets
especially India. The repetitive revision of India’s gross domestic product (GDP) by various
organisation’s including World Bank reflected the confidence in the Indian economy and its
prospects to sustain the country’s growth. The robust growth of the Indian economy also
becomes evident from the influx of the FDI. India has been declared one of the most
preferred destinations for the FDI inflows. Investment opportunities in India are plentiful. It
becomes evident with the numerous MNC’s not only trailing their products and services into
the Indian markets but also coming forward to set up their manufacturing units in India. This
form of investment strategy is mainly to curb the expenses and to harness the potentials of the
large consumer base and the boosting middle class income. It provides greater scope for
various business investments.
With the West business and industry giants, foraying into India with customised products for
the Indian consumer in order to tap the investment opportunities in India. The Government of
India is trying to accommodate and utilize the conducive investment climate of the country
by relaxing and even introducing new policies. The change in the Indian Government is to
strategize and attract foreign investments into the country especially from the perspective of
the non resident Indians (NRI). Various banks are working on providing investment strategies
and investment guidance to the prospective overseas Indians/ investors to make the most
fruitful deals. With the global market trend on a rise, on back of developing countries robust
economic growth, investing in India has emerged as a trendsetter phenomenon. Business in
India is booming with the high demand – supply curve on a rise. The investment advisors
globally are projecting the potentials of investing in India.
19
Investing/Entry Strategies For Foreign Companies Investing In India:
A foreign company planning to enter India, is required to meet all requirements of doing
business in India as required by domestic Indian businesses. In addition foreign companies
are required to seek governmental approval before investing in India. Some approvals are
automatic, - RBI Approvals - though application is required for those approvals.
Special Permission - FIPB Approvals - could be obtained to invest over and above the regular
percentage allowed.
1. As an Indian Company
Foreign company can commence operations in India by incorporating a company under the
Companies Act, 1956 through
I. Joint Ventures; or
II. Wholly Owned Subsidiaries
Foreign equity in such Indian companies can be up to 130% depending on the requirements
of the investor, subject to equity caps in respect of the area of activities under the Foreign
Direct Investment (FDI) policy. Details of the FDI policy, sectoral equity caps & procedures
can be obtained from Department of Industrial Policy & Promotion, Government of India.
A. Joint Venture With An Indian Partner
Foreign Companies can set up their operations in India by forging strategic alliances with
Indian partners. Joint Venture may entail the following advantages for a foreign investor:
• Established distribution/ marketing set up of the Indian partner
• Available financial resource of the Indian partners
• Established contacts of the Indian partners which help smoothen the process of setting up
of operations
B. Wholly Owned Subsidiary Company
Foreign companies can also to set up wholly owned subsidiary in sectors where 130% foreign
direct investment is permitted under the FDI policy.
C. Incorporation of Company
For registration and incorporation, an application has to be filed with Registrar of Companies
(ROC). Once a company has been duly registered and incorporated as an Indian company, it
is subject to Indian laws and regulations as applicable to other domestic Indian companies.
20
2. As a Foreign Company
Foreign Companies can set up their operations in India through:
A. Liaison office/ Representative office
Liaison office acts as a channel of communication between the principal place of business or
head office and entities in India. Liaison office cannot undertake any commercial activity
directly or indirectly and cannot, therefore, earn any income in India. Its role is limited to
collecting information about possible market opportunities and providing information about
the company and its products to prospective Indian customers. It can promote export/import
from/to India and also facilitate technical/financial collaboration between parent company
and companies in India.
The approval for establishing a liaison office in India is granted by the Reserve Bank of India
(RBI).
B. Project Office
Foreign Companies planning to execute specific projects in India can set up temporary
project/site offices in India. RBI has now granted general permission to foreign entities to
establish Project Offices subject to specified conditions. Such offices cannot undertake or
carry on any activity other than the activity relating and incidental to execution of the project.
Project Offices may remit outside India the surplus of the project on its completion, general
permission for which has been granted by the RBI.
C. Branch Office
Foreign companies engaged in manufacturing and trading activities abroad are allowed to set
up Branch Offices in India for the following purposes:
• Export/Import of goods
• Rendering professional or consultancy services
• Carrying out research work, in which the parent company is engaged.
• Promoting technical or financial collaborations between Indian companies and parent or

overseas group company.
• Representing the parent company in India and acting as buying/selling agents in India.
• Rendering services in Information Technology and development of software in India.
• Rendering technical support to the products supplied by the parent/ group companies.
21
• Foreign Airline/shipping Company.
A branch office is not allowed to carry out manufacturing activities on its own but is
permitted to subcontract these to an Indian manufacturer. Branch Offices established with the
approval of RBI, may remit outside India profit of the branch, net of applicable Indian taxes
and subject to RBI guidelines Permission for setting up branch offices is granted by the
Reserve Bank of India (RBI).
India FDI Policies:
The Indian Government issued it’s a new consolidated Foreign Direct Investment (FDI)
Policy on March 31, 2015 (the 2015 FDI Policy), which came into effect from April 1, 2015.
In this article we describe some of the major changes introduced in the 2015 FDI Policy.
1. Valuation of Convertible Instruments:
Under the earlier FDI policy, convertible instruments could be issued only when their
conversion price was decided upfront at the time of issuance. Such upfront determination of
conversion rate eliminated any scope of commercial benefit of investing through convertible
instruments. The 2015 FDI Policy provides that companies can now opt to prescribe a
conversion formula to determine the rate of conversion, subject to FEMA/SEBI pricing
guidelines. This is a welcome change that enables investors to benefit from unexpected
business growth.
2. Issue of Shares Against Investment in Kind and Incorporation Experiences:
The FDI policy so far allowed Indian companies to issue shares only against cash remittances
received through normal banking channels, except when converting External Commercial
Borrowings (ECB), or against lump sum technical know-how fees and royalty fees into
equity. Under the 2015 FDI Policy shares can now be issued against the:
(a) import of capital goods/machinery/equipment (including second-hand machinery); and
(b) pre-operative/ pre-incorporation expenses (including payments of rent, etc.)
It is important to note that if parties wish to issue shares against these items they need to
obtain prior approval from the Foreign Investment Promotion Board, even if the investment is
otherwise subject to the automatic route, which requires not prior permission. The FDI
Policy, 2015, specifies that all payments should be made directly to the company by the
22
foreign investor. Payments to third parities in the absence of bank accounts or otherwise are
not permitted.
3. Removal of No objection Certificate from previous ventures:
Until now a if a foreign investor, with an existing joint venture or technical collaboration
(entered before January 12, 2010), could not make any new investment in a similar venture
unless the existing Indian partner issued a no objection letter and the new investment was
also subject to specific prior Government approval. The 2015 FDI Policy eliminates this
earlier, protectionist measure. This further opens up access to the Indian market but is
expected to subject Indian entities to more competition from abroad.
4. Downstream Investment:
To determine levels of foreign investment in companies the earlier FDI policy identified
foreign owned and controlled companies under further categories as 'investing companies',
'operating companies' and 'investing-cum-operating companies.' The 2015 FDI Policy
simplifies the categories confining them to:
a. Companies owned or controlled by foreign investors, and
b. Companies owned and controlled by Indian residents.
5. Sector Specific Changes:
• FDI for the production of seeds and planting material permitted without restrictions, which
was earlier subject to such production under controlled condition.
• FDI in multi-brand retail continues to be prohibited.
• FDI in LLPs still not permitted.
23
Culture Of India - Changing Through FDI
India is building up the reforms, but admits that inter-governmental politics have been
impacting government policy. India's diverse economy encompasses traditional village
farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude
of services. Services are the major source of economic growth, accounting for more than half
of India's output with less than one third of its labor force. India is expected to be the world’s
largest economy by 2050, surpassing China and the US, in view of its continuing robust
growth in the recent past.
24
COMPANY PROFILE
ANGEL BROKING LTD
Angel Booking’s tryst with excellence in customer relations began more than 20 years ago.
Angel Group has emerged as one of the top 13 retail broking houses in India and incorporated
in 1987. Today, Angel has emerged as a premium Indian stock-broking and wealth
management house, with an absolute focus on retail business and a commitment to provide
"Real Value for Money" to all its clients.
It has memberships on BSE, NSE and the leading commodity exchanges in India NCDEX &
MCX. Angel is also registered as a depository participant with CDSL.
Angel Group Companies
Member on the BSE and Depository Participant with

Angel Broking Ltd.
CDSL
Angel Capital & Debt Market Membership on the NSE Cash and Futures &
Ltd. Options Segment
Angel Commodities Broking

Member on the NCDEX & MCX
Ltd.
Angel Securities Ltd. Member on the BSE
• Incorporated :1987
• BSE Membership :1997
• NSE membership :1998
• Member of NCDEX and MCX
• Depository Participants with CDSL
25
Angel’s presence-
• Nation- wide network of 21 regional hubs
• Presence 124 cities
• 6800 + sub brokers & business associates
• 5.9 lakh +clients
Management
S.No Name Designation & Department

1. Mr. Dinesh Thakkar Founder Chairman & Managing Director
2. Mr. Lalit Thakkar Managing Director - Institutional broking
3. Mr. Amit Majumdar Chief Strategy Officer
4. Mr. Sachinn Joshi Executive Director & CFO
5. Mr. Vinay Agrawal Executive Director – Equity Broking
6. Mr. Nikhil Daxini Executive Director - Sales and Marketing
7 Mr. Santanu Syam Executive Director – Operations
Associate Director – Information Technology
8. Mr. Ketan Shah
and B2B Business
9. Mr. Naveen Mathur Associate Director – Commodities & Currencies
26
Milestones
• October, 2015 Angel Broking bagged the Dun & Bradstreet Equity Broking Awards
2015 for 'Best Retail Broking House' and 'Fastest Growing Equity Broking House' (Large
Firms) at Dun & Bradstreet Equity Broking Awards 2015.
• March, 2015 Angel Broking was awarded with 'Best in Contribution Investor
Education & Category Enhancement of the year' and 'Best Commodity Research of the year'.
• November, 2012 Angel Broking bags the coveted ‘Major Volume Driver’ Award
by BSE for 2014-13
• October, 2014 Angel Broking bags the coveted ‘Major Volume Driver’ Award by
BSE for 2013-09
• May, 2014 Angel Broking wins two prestigious awards for 'Broking House with
Largest Distribution Network' and 'Best Retail Broking House' at Dun & Bradstreet Equity
Broking Awards
• August, 2013 Crossed 500000 trading accounts
● November, 2012 ‘Major Volume Driver’ for 2012

● December, 2011 Created 2500 business associates
● October, 2011 ‘Major Volume Driver’ award for 2011
● September, 2011 Launched Mutual Fund and IPO business
● July, 2011 Launched the PMS function
● October, 2010 ‘Major Volume Driver’ award for 2010
● September, 2009 Launched Online Trading Platform
● April, 2009 Initiated Commodities Broking division
● April, 2008 First published research report
● November, 2007 Angel’s first investor seminar
● March, 2007 Developed web-enabled back office software
● November, 1998 Angel Capital and Debt Market Ltd. Incorporated
● December, 1997 Angel Broking Ltd. Incorporated
27
Vision of the Company
To provide best value for money to investors through innovative products, trading /
investment strategies, state-of-the-art technology and personalized service
Philosophy of the Company
Ethical practices & transparency in all our dealings customer interest above our own always
deliver what we promise effective cost management.
Quality Assurance Policy
We are committed to being the leader in providing World Class Product & Services which
exceed the expectations of our customers Achieved by teamwork and a process of continuous
improvement
CRM Policy
A Customer is the most important visitor on our premises. He is not dependent on us but we
are dependent on him. He is not interruption in our work, but is the Purpose of it. We are not
doing him a favour by serving. He is doing us a favour by giving us an opportunity to do so
28
OUR ORGANIZATIONAL STRUCTURE
Logo of the company
29
Products of Angel Broking
● Online Trading
● Commodities
● DP Services
● PMS (Portfolio Management Services)
● Insurance
● IPO Advisory
● Mutual Fund
● Personal loans
● Quality Assurance
E-Broking
Angle has different products and voila trading on BSC, NSC, F&O, MCX & NCDEX. It
provides four softwares to customers for online trading.
Angel Investor
• User-friendly browser for investors
• Easy online trading platform
• Works in proxy and firewall system set up
• Integrated Back office: Access account information – anytime, anywhere
• Streaming quotes
• Refresh static rates when required
• Multiple exchanges on single screen
• Online fund transfer facility
30
Angel Trade
• Browser based for investor

• No installation required
• Advantage of mobility
• Trading as simple as internet surfing
• BSC, NSC, F&O, MCX & NCDEX
Angel Diet
• Application based ideal for traders.

• Multiple exchanges on single screen
• User friendly & simple navigation
• BSC, NSC, F&O, MCX & NCDEX
Angel Anywhere
• Application-based platform for day traders

• Intra-day/historical charts with various indicators
• BSC, NSC, Cash & Derivatives
Investment Advisory Services
To derive optimum returns from equity as an asset class requires professional guidance and
advice. Professional assistance will always be beneficial in wealth creation. Investment
decisions without expert advice would be like treating ailment without the help of a doctor.
● Expert Advice: Their expert investment advisors are based at various branches across India
to provide assistance in designing and monitoring portfolios.
● Timely Entry & Exit: Their advisors will regularly monitor customers’ investments and
guide customers to book timely profits. They will also guide them in adopting switching
techniques from one stock to another during various market conditions.
31
● De-Risking Portfolio: A diversified portfolio of stocks is always better than concentration in
a single stock. Based on their research, They diversify the portfolio in growth oriented sectors
and stocks to minimize the risk and optimize the returns.
Commodities
A commodity is a basic good representing a monetary value. Commodities are most often
used as inputs in the production of other goods or services. With the advent of new online
exchange, commodities can now be traded in futures markets. When they are traded on an
exchange, Commodities must also meet specified minimum standards known as basic grade.
Types of Commodities
● Precious Metals : Gold and Silver
● Base Metals : Copper, Zinc , Steel and Aluminum
● Energy : Crude Oil, Brent Crude and Natural Gas
● Pulses : Chana , Urad and Tur
● Spices : Black Pepper, Jeera, Turmeric , Red Chili
● Others : Guar Complex, Soy Complex, Wheat and Sugar
Benefits at Angel
● Three different online products tailored for traders & investors.
● Single Screen customized market-watch for MCX / NCDEX with BSE / NSE.
● Streaming Quotes and real time Rates. Intra-day trading calls.
● Research on 25 Agro Commodities, Precious and Base Metals, Energy products and
Polymers.
● An array of daily, weekly and special research reports.
● Active relationship management desk.
● Seminars, workshops and investment camps for investors
32
Depositary Participant Services
Angel Broking Ltd. is a DP services provider though CDSL. We offer depository services to
create a seamless transaction platform to execute trades through Angel group of companies
and settle these transactions through Angel Depository services.
● Wide branch coverage
● Personalized/attentive services of trained a dedicated staff
● Centralized billing & accounting
● Acceptance & execution of instruction on fax
● Daily statement of transaction & holdings statement on e-mail
● No charges for extra transaction statement & holdings statement
Portfolio Management Services

Successful investing in Capital Markets demands ever more time and expertise. Investment
Management is an art and a science in itself. Portfolio Management Services (PMS) is one
such service that is fast gaining eminence as an investment avenue of choice for High Net
worth Investors (HNI). PMS is a sophisticated investment vehicle that offers a range of
specialized investment strategies to capitalize on opportunities in the market. The Portfolio
Management Service combined with competent fund management, dedicated research and
technology, ensures a rewarding experience for its clients.
Mutual Fund
To enable clients to diversify their investment in the right direction. Angel Broking has added
another product in its range with mutual funds.
● Access to in-depth research & proper selection from diversified funds based on your
preferred criteria
● Rating and rankings of all mutual funds from our in house expert analysts
● News and alert for your Mutual fund Portfolio and performance tracking with watch
lists
● Current and historical performance of different funds enabling comparisons
33
Benefits
● No risk of loss, wrong transfer, mutilation or theft of share certificates.

● Hassle free automated pay-in of your sell obligations by your clearing members
● Reduced paper work.
● Speedier settlement process. Because of faster transfer and registration of securities in your
account, increased liquidity of your securities.
● Instant disbursement of non-cash benefits like bonus and rights into your account.
● Efficient pledge mechanism.
34
FUNDAMENTAL SERVICES
The Sunday Weekly Report
This weekly report is ace of all th reports. It offers a comprehensive market overview and
likely trends in the week ahead. It also presents top picks based on an in-depth analysis of
technical and fundamental factors. It gives short term and long-term outlook on these scripts,
their price targets and advice trading strategies. Another unique feature of this report is that it
provides an updated view of about 70 prominent stocks on an ongoing basis.
Stock Analysis
Angel’s stock research has performed very well over the past few years and angel model
portfolio has consistently outperformed the benchmark indices. The fundamentals of select
scripts are thoroughly analyzed and actionable advice is provided along with investment
rationale for each scrip.
Flash News
Key developments and significant news announcement that are likely to have an impact on
market / scripts are flashed live on trading terminals. Flash news keeps the market men
updated on an online basis and helps them to reshuffle their holdings
35
TECHNICAL SERVICES
Intra-Day Calls
For day trader’s angel provides intraday calls with entry, exit and stop loss levels during the
market hours and our calls are flashed on our terminals. Our analysts continuously track the
calls and provide the recommendations according to the market movements. Past
performance of these calls in terms of profit/loss is also available to our associates to enable
them to judge the success rate.
Posting Trading Calls

Angels “Position Trading Calls” are based on a through analysis of the price movements in
selected scripts and provides calls for taking positions with a 13 - 17 days time span with stop
losses and targets. These calls are also flashed on our terminals during market hours.
Derivative Strategies
Our analyst take a view on the NIFTY and selected scripts based on derivatives and technical
tools and devise suitable “Derivative Strategies” , which are flashed on our terminals and
published in our derivative reports.
Future Calls
A customised product for HNIs to help them trade with leveraged positions wherein clients
are advised on stocks with entry, exit and stop loss levels for short-term benefits. Over and
above this, financial status of the calls is mentioned at all times.
36
DATA ANALYSIS & INTERPRETATIONS
STATEMENT SHOWING RETURNS OF S&P BSE SENSEX 160 FROM 2016-2021
Month Open Close Returns

16-Jan 5343.39 5050.54 -5.4806
16-Feb 5021.36 5079.94 1.166616
16-Mar 5191.29 5394.18 5.182164
16-Apr 5423.04 5439.84 0.309789
16-May 5416.9 5243.91 -3.08618
16-Jun 5231.3 5476.7 4.690995
16-Jul 5447.33 5542.87 1.753887
16-Aug 5583.58 5584.08 0.008955
16-Sep 5618.42 6163.86 9.825352
16-Oct 6193.48 6171.18 -0.36006
16-Nov 6229.05 5962.87 -4.2732
16-Dec 5967.21 6191.51 3.758876
17-Jan 6219.56 5550.03 -16.7649
17-Feb 5574.59 5370.5 -3.66168
17-Mar 5408.53 5855.53 8.264723
17-Apr 5858.31 5795.29 -1.07574
17-May 5817.32 5638.16 -3.07977
17-Jun 5644.23 5686.26 0.744654
17-Jul 5717.27 5531.7 -3.24578
17-Aug 5568.18 5062.17 -9.08753
17-Sep 5192.47 4995.67 -2.66538
17-Oct 4950.19 5334.20 7.757574
17-Nov 5295.02 4831.73 -8.74954
17-Dec 4938.91 4598.21 -6.89828
18-Jan 4616.42 5202.65 18.6988
18-Feb 5198.68 5406.46 3.996784
18-Mar 5393.04 5321.21 -1.44427
18-Apr 5320.66 5268.41 -0.98202
18-May 5296.69 4942.19 -6.69399
18-Jun 4931.16 5279.22 7.05838
37
18-Jul 5290.08 5229.16 -1.21819
18-Aug 5225.41 5251.07 0.491662
18-Sep 5260.07 5701.39 8.390002
18-Oct 5706.23 5620.99 -1.49381
18-Nov 5619.91 5908.97 5.203499
18-Dec 5916.31 5975.74 1.167049
19-Jan 5998.53 6091.49 1.549719
19-Feb 6094.62 5720.1 -6.20509
19-Mar 5723.61 5678.7 -0.78464
19-Apr 5694.03 5941.35 4.343497
19-May 5931.9 5991.17 0.998162
19-Jun 6021.01 5802.3 -3.53632
19-Jul 5799.54 5707.16 -1.59288
19-Aug 5737.99 5447.21 -5.06867
19-Sep 5470.19 5723.4 4.628907
19-Oct 5739.18 6270.72 9.262744
19-Nov 6270.99 6177.75 -1.48685
19-Dec 6177.55 6326.72 2.420717
20-Jan 6343.75 6071.02 -4.29919
20-Feb 6064.1 6235.99 2.834551
20-Mar 6224.99 6707.28 7.747643
20-Apr 6728.58 6721.36 -0.19648
20-May 6738.56 7345.18 9.00193
20-Jun 7385.61 7742.66 4.834401
20-Jul 7762.42 7799.72 0.48052
20-Aug 7753.26 8016.74 3.398318
20-Sep 8043.67 8021.71 -0.3476
20-Oct 8028.78 8383.91 4.423218
20-Nov 8417.57 8644.37 2.767617
20-Dec 8662.9 8369.27 -3.38951
21-Jan 8367.21 8903.1 6.405407
21-Feb 8903.18 8994.46 1.025252
21-Mar 9044.85 8606.6 -4.8453
21-Apr 8605.63 8321.56 -3.30098
38
21-May 8378.16 8550.51 2.057194
21-Jun 8532.68 8464.09 -0.80385
21-Jul 8477.7 8653.31 2.072034
21-Aug 8650.08 8180.97 -6.17682
21-Sep 8073.91 8077.41 0.04335
21-Oct 8181.32 8193.87 0.893328
21-Nov 8194.45 8082.02 -1.37203
21-Dec 8098.66 8097.57 -0.01946
RETURNS=(CLOSE PRICE-OPEN PRICE)/OPEN PRICE*160
INTERPRETATION:(Returns)
The above table shows calculation of average return BSE index for a period of 5 years that is
from jan 2016 – dec 2021. During this period the highest return is 18.69 in the month of Jan
2018 and the lowest return is -8.74 in the month of Nov 2017.
39
STATEMENT SHOWING CORRELATION COEFFICIENT AND FDI FROM 2016-2021:
Month Index close FDI
16-Jan 5050.54 9386
16-Feb 5079.94 7955
16-Mar 5394.18 5497
16-Apr 5439.84 9854
16-May 5243.91 16195
16-Jun 5476.7 6429
16-Jul 5542.87 8359
16-Aug 5584.08 6196
16-Sep 6163.86 9754
16-Oct 6171.18 6185
16-Nov 5962.87 7328
16-Dec 6191.51 9094
17-Jan 5550.03 4725
17-Feb 5370.5 5785
17-Mar 5855.53 4833
17-Apr 5795.29 19847
17-May 5638.16 20946
17-Jun 5686.26 25371
17-Jul 5531.7 4886
17-Aug 5062.17 18820
17-Sep 4995.67 8407
17-Oct 5334.20 5721
17-Nov 4831.73 18909
17-Dec 4598.21 7184
18-Jan 5202.65 16288
18-Feb 5406.46 16874
18-Mar 5321.21 40766
18-Apr 5268.41 9620
18-May 4942.19 7229
18-Jun 5279.22 6971
18-Jul 5229.16 8182
18-Aug 5251.07 18578
40
18-Sep 5701.39 25552
18-Oct 5620.99 16295
18-Nov 5908.97 5798
18-Dec 5975.74 6018
19-Jan 6091.49 17719
19-Feb 5720.1 9654
19-Mar 5678.7 8297
19-Apr 5941.35 18623
19-May 5991.17 8974
19-Jun 5802.3 8432
19-Jul 5707.16 9903
19-Aug 5447.21 8899
19-Sep 5723.4 26351
19-Oct 6270.72 7556
19-Nov 6177.75 162547
19-Dec 6326.72 6819
20-Jan 6071.02 19589
20-Feb 6235.99 18557
20-Mar 6707.28 22158
20-Apr 6721.36 16290
20-May 7345.18 21973
20-Jun 7742.66 18168
20-Jul 7799.72 21622
20-Aug 8016.74 7783
20-Sep 8021.71 16297
20-Oct 8383.91 16288
20-Nov 8644.37 9486
20-Dec 8369.27 19562
21-Jan 8903.1 27880
21-Feb 8994.46 20397
21-Mar 8606.6 19221
21-Apr 8321.56 22620
21-May 8550.51 24564
21-Jun 8464.09 19181
41
21-Jul 8653.31 18769
21-Aug 8180.97 20446
21-Sep 8077.41 19181
21-Oct 8193.87 34165
21-Nov 8082.02 19399
21-Dec 8097.57 30865
Correlation coefficient = 0.2421

INTERPRETATION :( correlation coefficient)
The above table shows calculation of correlation coefficient between BSE index close and
FDI for a period of 5 years that is from Jan 2016 to Dec 2021 and the correlation value is
0.2421.
42
STATEMENT SHOWING RETURNS OF S&P BSE SENSEX 200 FROM 2016-2021
Jan-16 2178.01 2065.21 -5.17904
Feb-16 2053.93 2071.72 0.866204
Mar-16 2091.42 2199.5 5.167781
Apr-16 2216.53 2230.17 0.888475
May-16 2218.91 2218.21 -3.00598
Jun-16 2207.54 2248.06 4.680704
Jul-16 2237.38 2281.63 1.97776
Aug-16 2297.17 2302.88 0.248567
Sep-16 2319.81 2530.47 9.363777
Oct-16 2541.63 2541.85 0.008656
Nov-16 2562.44 2451.45 -4.33202
Dec-16 2453 2533.9 3.298002
Jan-17 2543.96 2270.22 -16.7604
Feb-17 2279.03 2185.86 -4.08820
Mar-17 2199.48 2378.69 8.207835
Apr-17 2379.69 2363.68 -0.67278
May-17 2371.58 2301.65 -2.94867
Jun-17 2303.82 2320.65 0.470089
Jul-17 2325.75 2256.48 -2.97839
Aug-17 2269.53 2061.08 -9.18472
Sep-17 2086.41 2028.27 -2.7866
Oct-17 2017.86 2215.58 7.203638
Nov-17 2201.49 1953.03 -8.80041
Dec-17 1991.63 1850.89 -7.06657
Jan-18 1857.46 2097.94 18.94671
Feb-18 2096.51 2190.92 4.503198
Mar-18 2186.05 2217.89 -1.28817
Apr-18 2161.45 2196.82 -1.19951
May-18 2208.08 2003.1 -6.74928
Jun-18 1998.91 2198.1 6.963295
Jul-18 2202.59 2180.47 -1.31843
Aug-18 2179.29 2184.06 0.509632
43
Sep-18 2186.75 2307.58 8.502645
Oct-18 2318.66 2276.21 -1.5787
Nov-18 2276.46 2389.51 4.966044
Dec-18 2391.68 2424.38 1.36724
Jan-19 2435.31 2461.18 1.059824
Feb-19 2463.69 2307.98 -6.32019
Mar-19 2317.98 2287.96 -1.03894
Apr-19 2295.2 2388.98 4.085918
May-19 2384.85 2409.22 1.021867
Jun-19 2416.46 2323.83 -3.83329
Jul-19 2324.56 2270.93 -2.3071
Aug-19 2285.47 2167.96 -5.20161
Sep-19 2177.21 2281.93 4.818720
Oct-19 2288.56 2490.49 8.823452
Nov-19 2492.65 2463.86 -1.215
Dec-19 2467.32 2530.58 2.563916
Jan-20 2537.73 2425.46 -4.42403
Feb-20 2418.91 2494.74 3.194883
Mar-20 2492.45 2681.35 7.578888
Apr-20 2689.08 2688.05 -0.0383
May-20 2696.65 2951.21 9.439861
Jun-20 2966.45 3184.4 5.324546
Jul-20 3192.18 3204.77 0.401956
Aug-20 3186.75 3233.65 3.418885
Sep-20 3243.98 3251.84 0.242295
Oct-20 3256.87 3392.39 4.16165
Nov-20 3403.35 3516.28 3.201904
Dec-20 3517.65 3428.09 -2.54602
Jan-21 3427.29 3641.16 6.240207
Feb-21 3641.75 3674.53 0.900177
Mar-21 3694.09 3537.55 -4.23758
Apr-21 3537.4 3425.03 -3.17663
May-21 3446.5 3532.73 2.501959
Jun-21 3525.20 3499.51 -0.72706
44
Jul-21 3504.73 3588.95 2.403038
Aug-21 3589.7 3368.42 -6.1643
Sep-21 3349.51 3352.02 0.074936
Oct-21 3369.54 3404.18 1.028034
Nov-21 3404.79 3365.29 -1.16019
Dec-21 3372.75 3377.51 0.201791
INTERPRETATION :( Returns)
from Jan 2016 – dec 2021. During this period the highest return is 18.94 in the month of Jan
2018 and the lowest return is -9.18 in the month of Aug 2017.
45
STATEMENT SHOWING CALCULATION OF CORRELATION COEFFFICIENT
BETWEEN S&P 200 AND FDI FROM 2016-2021:
Jan-16 2065.21 9386
Feb-16 2071.72 7955
Mar-16 2199.5 5497
Apr-16 2230.17 9854
May-16 2218.21 16195
Jun-16 2248.06 6429
Jul-16 2281.63 8359
Aug-16 2302.88 6196
Sep-16 2530.47 9754
Oct-16 2541.85 6185
Nov-16 2451.45 7328
Dec-16 2533.9 9094
Jan-17 2270.22 4725
Feb-17 2185.86 5785
Mar-17 2378.69 4833
Apr-17 2363.68 19847
May-17 2301.65 20946
Jun-17 2320.65 25371
Jul-17 2256.48 4886
Aug-17 2061.08 18820
Sep-17 2028.27 8407
Oct-17 2215.58 5721
Nov-17 1953.03 18909
Dec-17 1850.89 7184
Jan-18 2097.94 16288
Feb-18 2190.92 16874
Mar-18 2217.89 40766
Apr-18 2196.82 9620
May-18 2003.1 7229
Jun-18 2198.1 6971
Jul-18 2180.47 8182
46
Aug-18 2184.06 18578
Sep-18 2307.58 25552
Oct-18 2276.21 16295
Nov-18 2389.51 5798
Dec-18 2424.38 6018
Jan-19 2461.18 17719
Feb-19 2307.98 9654
Mar-19 2287.96 8297
Apr-19 2388.98 18623
May-19 2409.22 8974
Jun-19 2323.83 8432
Jul-19 2270.93 9903
Aug-19 2167.96 8899
Sep-19 2281.93 26351
Oct-19 2490.49 7556
Nov-19 2463.86 162547
Dec-19 2530.58 6819
Jan-20 2425.46 19589
Feb-20 2494.74 18557
Mar-20 2681.35 22158
Apr-20 2688.05 16290
May-20 2951.21 21973
Jun-20 3184.4 18168
Jul-20 3204.77 21622
Aug-20 3233.65 7783
Sep-20 3251.84 16297
Oct-20 3392.39 16288
Nov-20 3516.28 9486
Dec-20 3428.09 19562
Jan-21 3641.16 27880
Feb-21 3674.53 20397
Mar-21 3537.55 19221
Apr-21 3425.03 22620
May-21 3532.73 24564
47
Jun-21 3499.51 19181
Jul-21 3588.95 18769
Aug-21 3368.42 20446
Sep-21 3352.02 19181
Oct-21 3404.18 34165
Nov-21 3365.29 19399
Dec-21 3377.51 30865
CORRELATION COEFFICIENT=0.234174
The above table shows calculation of correlation coefficient between BSE index close and
FDI for a period of 5 years that is from Jan 2016 to dec 2021 and the correlation coefficient
value is 0.234174.
48
STATEMENT SHOWING RETURNS OF SENSEX BSE 500 FROM 2016-2021

Jan-16 6839.38 6509.9 -4.8174
Feb-16 6477.83 6518.38 0.625981
Mar-16 6576.07 6919.55 5.22318
Apr-16 6952.74 7042.68 1.293591
May-16 7009.94 6782.37 -3.24639
Jun-16 6769.03 7092.2 4.774244
Jul-16 7061.59 7205.22 2.033961
Aug-16 7249.77 7289.74 0.551928
Sep-16 7322.52 7984.45 9.039648
Oct-16 8018.42 8036.88 0.23022
Nov-16 8095.04 7722.05 -4.60764
Dec-16 7726.39 7961.06 3.037253
Jan-17 7989.28 7188.29 -16.7768
Feb-17 7218.97 6850.4 -4.22999
Mar-17 6888.55 7437.26 7.965537
Apr-17 7440.05 7427.20 -0.17352
May-17 7449.52 7233.85 -2.89509
Jun-17 7240.20 7265.32 0.347783
Jul-17 7296.61 7171.31 -2.53954
Aug-17 7208.17 6487.22 -9.24566
Sep-17 6559.2 6385.76 -2.64422
Oct-17 6338.96 6763.26 6.693527
Nov-17 6723.25 6177 -9.01722
Dec-17 6226.6 5778.68 -7.19365
Jan-18 5797.33 6549.31 18.97180
Feb-18 6545.20 6857.28 4.769035
Mar-18 6844.63 6759.63 -1.24185
Apr-18 6769.94 6698.51 -1.05517
May-18 6732.03 6280.04 -6.72002
Jun-18 6268.76 6682.47 6.599551
Jul-18 6695.99 6605.7 -1.34842
49
Aug-18 6602.82 6632.34 0.447082
Sep-18 6640.17 7206.51 8.528999
Oct-18 7221.74 7178.77 -1.42583
Nov-18 7180.24 7472.45 4.946603
Dec-18 7480.17 7581.57 1.355584
Jan-19 7619.36 7665.74 0.688001
Feb-19 7673.22 7163.69 -6.64037
Mar-19 7175.22 7084.96 -1.25794
Apr-19 7165.97 7385.25 3.930216
May-19 7374.61 7441.89 0.918319
Jun-19 7463.18 7164.06 -4.00794
Jul-19 7166.52 6985.56 -2.52507
Aug-19 7027.92 6673.96 -5.03648
Sep-19 6700.73 7019.96 4.764168
Oct-19 7040.23 7656.62 8.755254
Nov-19 7663.98 7598.21 -0.85817
Dec-19 7609.06 7828.34 2.881828
Jan-20 7850.35 7499.02 -4.47534
Feb-20 7481.75 7709.75 3.047421
Mar-20 7704.83 8295.26 7.663181
Apr-20 8318.52 8342.21 0.284065
May-20 8369.45 9206.01 9.9954
Jun-20 9254.33 9791.34 5.802797
Jul-20 9816.18 9831.51 0.216171
Aug-20 9777.94 16096.08 3.253651
Sep-20 16187.42 16173.26 0.452633
Oct-20 16189.01 16594.89 3.983508
Nov-20 16628.58 16956.16 3.082067
Dec-20 16978.89 16721.62 -2.34332
Jan-21 16720.05 17946.24 5.841897
Feb-21 17948.93 18054.35 0.928898
Mar-21 18171.99 17048.75 -4.02398
Apr-21 17048.98 16696.83 -3.18717
May-21 16763.48 17023.76 2.418177
50
Jun-21 17003.38 16903.53 -0.90745
Jul-21 16920.36 17833.42 2.866755
Aug-21 17838.2 16536.38 -6.24495
Sep-21 16480.25 16498.27 0.171942
Oct-21 16551.05 16671.58 1.202351
Nov-21 16674.82 16580.88 -0.88001
Dec-21 16602.87 16634.22 0.295675
51
STATEMENT SHOWING CALCULATIONS OF CORRELATION COEFFFICIENT BSE
INDEX AND FDI FROM 2016-2021:
Jan-16 6509.9 9386
Feb-16 6518.38 7955
Mar-16 6919.55 5497
Apr-16 7042.68 9854
May-16 6782.37 16195
Jun-16 7092.2 6429
Jul-16 7205.22 8359
Aug-16 7289.74 6196
Sep-16 7984.45 9754
Oct-16 8036.88 6185
Nov-16 7722.05 7328
Dec-16 7961.06 9094
Jan-17 7188.29 4725
Feb-17 6850.4 5785
Mar-17 7437.26 4833
Apr-17 7427.20 19847
May-17 7233.85 20946
Jun-17 7265.32 25371
Jul-17 7171.31 4886
Aug-17 6487.22 18820
Sep-17 6385.76 8407
Oct-17 6763.26 5721
Nov-17 6177 18909
Dec-17 5778.68 7184
Jan-18 6549.31 16288
Feb-18 6857.28 16874
Mar-18 6759.63 40766
Apr-18 6698.51 9620
May-18 6280.04 7229
Jun-18 6682.47 6971
Jul-18 6605.7 8182
52
Aug-18 6632.34 18578
Sep-18 7206.51 25552
Oct-18 7178.77 16295
Nov-18 7472.45 5798
Dec-18 7581.57 6018
Jan-19 7665.74 17719
Feb-19 7163.69 9654
Mar-19 7084.96 8297
Apr-19 7385.25 18623
May-19 7441.89 8974
Jun-19 7164.06 8432
Jul-19 6985.56 9903
Aug-19 6673.96 8899
Sep-19 7019.96 26351
Oct-19 7656.62 7556
Nov-19 7598.21 162547
Dec-19 7828.34 6819
Jan-20 7499.02 19589
Feb-20 7709.75 18557
Mar-20 8295.26 22158
Apr-20 8342.21 16290
May-20 9206.01 21973
Jun-20 9791.34 18168
Jul-20 9831.51 21622
Aug-20 16096.08 7783
Sep-20 16173.26 16297
Oct-20 16594.89 16288
Nov-20 16956.16 9486
Dec-20 16721.62 19562
Jan-21 17946.24 27880
Feb-21 18054.35 20397
Mar-21 17048.75 19221
Apr-21 16696.83 22620
May-21 17023.76 24564
53
Jun-21 16903.53 19181
Jul-21 17833.42 18769
Aug-21 16536.38 20446
Sep-21 16498.27 19181
Oct-21 16671.58 34165
Nov-21 16580.88 19399
Dec-21 16634.22 30865
The above table shows calculation of correlation co-eff between BSE index close and FDI for
a period of 5 years that is from Jan 2016 to dec 2021 and the correlation co- eff value is
0.228375
54
STATEMENT SHOWING RETURNS S&P AUTO FROM 2016-2021

Jan-16 7477.72 6953.2 -7.02044
Feb-16 6921.96 7170.99 3.59768
Mar-16 7249.25 7671.24 5.821820
Apr-16 7724.26 7799.85 0.978605
May-16 7749.21 7699.94 -0.63504
Jun-16 7676.38 8323.3 8.42741
Jul-16 8287.83 8424.2 1.645425
Aug-16 8494.27 8819.79 3.762195
Sep-16 8890.65 9527.64 7.164718
Oct-16 9581.16 9909.91 3.431819
Nov-16 9964.35 16099.95 1.360851
Dec-16 16177.88 16235.41 1.161607
Jan-17 16337.49 8894.58 -19.958
Feb-17 8955.48 8252.92 -7.84503
Mar-17 8331.5 9290.75 17.51953
Apr-17 9286.58 9559.94 2.943602
May-17 9606.66 8932.74 -7.02179
Jun-17 8953.29 8798.48 -1.72909
Jul-17 8825.71 8758.83 -0.75779
Aug-17 8794.5 8396.16 -4.52942
Sep-17 8445.1 8498.42 0.631972
Oct-17 8468.51 9477.19 17.91695
Nov-17 9403.41 8434.28 -16.3062
Dec-17 8638.94 8203.65 -5.73323
Jan-18 8216.59 9241.78 18.47707
Feb-18 9273.16 9994.61 7.77998
Mar-18 16002.9 16194.88 1.319417
Apr-18 16235.02 16645.52 4.01674
May-18 16639.99 8873.01 -16.607
Jun-18 8871.25 9457.91 6.619048
Jul-18 9456.56 9180.07 -3.62172
55
Aug-18 9096.17 9240.4 1.586282
Sep-18 9269.43 16419.19 18.33905
Oct-18 16465.54 16307.26 -1.51839
Nov-18 16341.53 16820.46 4.573180
Dec-18 16804.61 18026.21 5.7531
Jan-19 18165.75 16993.92 -4.44847
Feb-19 17016.38 16458.61 -5.01796
Mar-19 16508.72 9994.23 -4.89584
Apr-19 9978.5 16957.88 9.820902
May-19 16852.06 17166.34 2.89604
Jun-19 17168.20 16721.77 -3.53227
Jul-19 16690.42 16568.8 -1.19765
Aug-19 16586.32 16202.17 -3.62874
Sep-19 16202.17 16996.59 8.42443
Oct-19 17054.89 18074.9 9.226777
Nov-19 18202.87 18321.76 1.47321
Dec-19 18321.02 18258.83 -0.45627
Jan-20 18290.21 18168.87 -5.86922
Feb-20 18158.27 18598.73 9.001866
Mar-20 18557.92 19280.27 5.752207
Apr-20 19349 19372.23 0.174021
May-20 19371.67 20493.77 8.391622
Jun-20 20516.9 21849.29 5.045085
Jul-20 21878.07 22090.71 1.391799
Aug-20 21995.98 17293.65 18.32575
Sep-20 17356.21 17746.9 2.25161
Oct-20 17773.25 18579.07 4.533892
Nov-20 18524.86 19220.05 3.752741
Dec-20 19306.78 18630.84 -3.50165
Jan-21 18586.8 19985.9 7.527385
Feb-21 20021.39 19982.74 -0.16318
Mar-21 20095.06 19258.66 -4.16222
Apr-21 19275.71 18334.5 -4.88288
May-21 18482.67 19079.79 3.230702
56
Jun-21 19042.24 18718.17 -1.73336
Jul-21 18753.95 19167.78 1.886696
Aug-21 19168.16 17865.27 -6.79716
Sep-21 17779.96 17391.08 -2.18718
Oct-21 17483.24 18166.21 3.906427
Nov-21 18246.39 18964.36 3.934861
Dec-21 19028.85 18519.08 -2.67893
2018 and the lowest return is -16.607 in the month of May 2018.
57
STATEMENT SHOWING CALCULATIONS OF CORRELATION COEFFICIENT AND
FD FROM 2016-2021
Jan-16 6953.2 9386
Feb-16 7170.99 7955
Mar-16 7671.24 5497
Apr-16 7799.85 9854
May-16 7699.94 16195
Jun-16 8323.3 6429
Jul-16 8424.2 8359
Aug-16 8819.79 6196
Sep-16 9527.64 9754
Oct-16 9909.91 6185
Nov-16 16099.95 7328
Dec-16 16235.41 9094
Jan-17 8894.58 4725
Feb-17 8252.92 5785
Mar-17 9290.75 4833
Apr-17 9559.94 19847
May-17 8932.74 20946
Jun-17 8798.48 25371
Jul-17 8758.83 4886
Aug-17 8396.16 18820
Sep-17 8498.42 8407
Oct-17 9477.19 5721
Nov-17 8434.28 18909
Dec-17 8203.65 7184
Jan-18 9241.78 16288
Feb-18 9994.61 16874
Mar-18 16194.88 40766
Apr-18 16645.52 9620
May-18 8873.01 7229
Jun-18 9457.91 6971
Jul-18 9180.07 8182
58
Aug-18 9240.4 18578
Sep-18 16419.19 25552
Oct-18 16307.26 16295
Nov-18 16820.46 5798
Dec-18 18026.21 6018
Jan-19 16993.92 17719
Feb-19 16458.61 9654
Mar-19 9994.23 8297
Apr-19 16957.88 18623
May-19 17166.34 8974
Jun-19 16721.77 8432
Jul-19 16568.8 9903
Aug-19 16202.17 8899
Sep-19 16996.59 26351
Oct-19 18074.9 7556
Nov-19 18321.76 162547
Dec-19 18258.83 6819
Jan-20 18168.87 19589
Feb-20 18598.73 18557
Mar-20 19280.27 22158
Apr-20 19372.23 16290
May-20 20493.77 21973
Jun-20 21849.29 18168
Jul-20 22090.71 21622
Aug-20 17293.65 7783
Sep-20 17746.9 16297
Oct-20 18579.07 16288
Nov-20 19220.05 9486
Dec-20 18630.84 19562
Jan-21 19985.9 27880
Feb-21 19982.74 20397
Mar-21 19258.66 19221
Apr-21 18334.5 22620
May-21 19079.79 24564
59
Jun-21 18718.17 19181
Jul-21 19167.78 18769
Aug-21 17865.27 20446
Sep-21 17391.08 19181
Oct-21 18166.21 34165
Nov-21 18964.36 19399
Dec-21 18519.08 30865
0.282036.
60
STATEMENT SHOWING RETURNS OF BSE S&P BANKEX FROM 2016-2021
Jan-16 16066.4 9654.09 -4.0959
Feb-16 9592.41 9828.68 2.463093
Mar-16 9952.64 16652.35 7.030396
Apr-16 16697.33 17815.07 4.279018
May-16 17180.36 16656.56 -4.179
Jun-16 16629.08 16765.03 1.279038
Jul-16 16696.54 18199.55 7.881807
Aug-16 17646.82 18190.64 4.669257
Sep-16 18241.20 20025.04 20.57299
Oct-16 20086.8 20016.21 -0.50171
Nov-16 20165.91 19618.77 -3.86237
Dec-16 19660.74 19379.73 -2.05706
Jan-17 19457.99 18064.01 -16.358
Feb-17 18099.06 17840.34 -2.19835
Mar-17 17927.17 19299.77 17.50874
Apr-17 19297.01 19076.97 -1.65481
May-17 19168.5 18543 -4.31999
Jun-17 18533.91 18821.05 2.290905
Jul-17 18920.93 18447.83 -3.61674
Aug-17 18553.19 16904.24 -19.1953
Sep-17 17057.31 16850.73 -1.86827
Oct-17 16739.2 18054.03 6.656269
Nov-17 17972.85 9850.43 -19.3864
Dec-17 16160.86 9219.39 -9.9218
Jan-18 9218.56 17990.7 23.64316
Feb-18 17988.31 17974.16 5.20431
Mar-18 17938.09 17751.18 -1.56566
Apr-18 17759.95 17828.63 0.584016
May-18 17895.28 16884.53 -8.49707
Jun-18 16883.33 17908.71 9.422165
Jul-18 17926.91 17916.46 -0.19792
Aug-18 17870.73 18181.94 -2.98878
61
Sep-18 18177.72 19198.71 20.07388
Oct-18 19216.97 18947.29 -1.54878
Nov-18 18969.41 19951.88 7.575287
Dec-18 19942.59 20344.99 2.886181
Jan-19 20434.20 20580.26 1.018322
Feb-19 20580.54 19203.87 -9.44183
Mar-19 19250.6 19033.35 -1.63955
Apr-19 19164.92 20363.74 9.605705
May-19 20369.79 20261.24 -0.7554
Jun-19 20264.18 19257.76 -7.05558
Jul-19 19258.41 18040.96 -19.7079
Aug-19 18166.3 16304.35 -16.9166
Sep-19 16379.39 16964.19 5.634242
Oct-19 17047.94 19086.92 18.45575
Nov-19 19171.2 18730.3 -2.90521
Dec-19 18798.33 19001.94 1.590917
Jan-20 19042.38 17718.31 -16.1981
Feb-20 17661.77 18284.27 5.337955
Mar-20 18246.82 20572.46 18.98975
Apr-20 20625.51 20706.66 0.554852
May-20 20786.44 16953.86 20.65816
Jun-20 16980.9 17475.08 2.916217
Jul-20 17509.57 17485.61 -0.19684
Aug-20 17358.42 18003.68 3.717274
Sep-20 18020.56 17621.46 -2.24799
Oct-20 17676.63 19505.16 16.34434
Nov-20 19539.72 21818.07 8.55872
Dec-20 21857.32 22058.17 0.944569
Jan-21 22089.27 22721.52 5.706336
Feb-21 22685.02 22572.97 -0.49394
Mar-21 22893.09 20865.31 -8.85761
Apr-21 20890.21 21630.88 0.673667
May-21 21798.38 22171.65 1.76584
Jun-21 22181.5 20982.18 -2.50596
62
Jul-21 20963.34 22099.24 2.556367
Aug-21 22158.24 19637.21 -8.91716
Sep-21 19484.19 19681.55 1.019235
Oct-21 19847.3 19773.88 -0.36992
Nov-21 19808.27 19916.3 0.545378
Dec-21 19932.82 19328.74 -3.03058
63
STATEMENT SHOWING CALCULATIONS OF CORRELATION COEFFFICIENT AND
FDI FROM 2016-2021
Jan-16 9654.09 9386
Feb-16 9828.68 7955
Mar-16 16652.35 5497
Apr-16 17815.07 9854
May-16 16656.56 16195
Jun-16 16765.03 6429
Jul-16 18199.55 8359
Aug-16 18190.64 6196
Sep-16 20025.04 9754
Oct-16 20016.21 6185
Nov-16 19618.77 7328
Dec-16 19379.73 9094
Jan-17 18064.01 4725
Feb-17 17840.34 5785
Mar-17 19299.77 4833
Apr-17 19076.97 19847
May-17 18543 20946
Jun-17 18821.05 25371
Jul-17 18447.83 4886
Aug-17 16904.24 18820
Sep-17 16850.73 8407
Oct-17 18054.03 5721
Nov-17 9850.43 18909
Dec-17 9219.39 7184
Jan-18 17990.7 16288
Feb-18 17974.16 16874
Mar-18 17751.18 40766
Apr-18 17828.63 9620
May-18 16884.53 7229
Jun-18 17908.71 6971
Jul-18 17916.46 8182
64
Aug-18 18181.94 18578
Sep-18 19198.71 25552
Oct-18 18947.29 16295
Nov-18 19951.88 5798
Dec-18 20344.99 6018
Jan-19 20580.26 17719
Feb-19 19203.87 9654
Mar-19 19033.35 8297
Apr-19 20363.74 18623
May-19 20261.24 8974
Jun-19 19257.76 8432
Jul-19 18040.96 9903
Aug-19 16304.35 8899
Sep-19 16964.19 26351
Oct-19 19086.92 7556
Nov-19 18730.3 162547
Dec-19 19001.94 6819
Jan-20 17718.31 19589
Feb-20 18284.27 18557
Mar-20 20572.46 22158
Apr-20 20706.66 16290
May-20 16953.86 21973
Jun-20 17475.08 18168
Jul-20 17485.61 21622
Aug-20 18003.68 7783
Sep-20 17621.46 16297
Oct-20 19505.16 16288
Nov-20 21818.07 9486
Dec-20 22058.17 19562
Jan-21 22721.52 27880
Feb-21 22572.97 20397
Mar-21 20865.31 19221
Apr-21 21630.88 22620
May-21 22171.65 24564
65
Jun-21 20982.18 19181
Jul-21 22099.24 18769
Aug-21 19637.21 20446
Sep-21 19681.55 19181
Oct-21 19773.88 34165
Nov-21 19916.3 19399
Dec-21 19328.74 30865
0.218375.
66
FINDINGS
1. The total closing of BSE S&P 160SENSEX is 8994.46.The highest investment in
FDI is 162547 in the year 2019 and the lowest investment in FDI is 4725 in the year
2017.The correlation coefficient of FDI and BSE s&p 160 SENSEX IS 0.2421.
2. The total closing of BSE S&P200SENSEX is 3674.53.The highest investment in FDI
is 162547 in the year 2019 and the lowest investment in FDI is 4725 in the year
3. The total closing of BSE S&P 500SENSEX is 18054.35 .The highest investment in
4. The total closing of BSE S&P AUTOSENSEX is 19985.9 .The highest investment in
2017.The correlation coefficient of FDI and BSE s&p 160 SENSEX IS 0.282036
5. The total closing of BSE S&P BANKEX SENSEX is 22721.52 .The highest
investment in FDI is 162547 in the year 2019 and the lowest investment in FDI is
4725 in the year 2017.The correlation coefficient of FDI and BSE S&P 160 SENSEX
IS 0.218375.
6. The correlation coefficient from 2016-2021 for all indices to fdi’s is positive and less
than 1. So, it can be said that it is not a perfect positive correlation.
67
SUGGESTIONS
1. It is suggested to investors that while investing in stocks like Banks, Auto impact of
FDIs on different concerned indices can be observed.
2. As the correlation coefficient between FDI’s and Indices is positive the flow of FDI’s
should be observed while investing in stocks of different indices.
3. As the impact of FDIs on S&P Auto is more than other indices, it is suggested to
investors that, it is better to invest in Auto stocks.
4. The next best stock after Auto stock is S&P160 stock as it has more influenced by
FDI after Auto stocks.
5. The Investors are advised to observe not only Impact of FDIs on stock markets, but,
also other aspects like Inflation rates, interest rates etc., in the economy to invest in
different stocks.
68
CONCLUSION:
The present project has been undertaken to study the impact of FDI on Indian stock market
foreign direct investment improves nations economic conditions when direct investment
was allowed by Indian government from 1991, it started growing investment of economic
growth. FDI shows impact in many sectors especially on Indian stock market investors
generally feels that, the equity investment will grow faster than domestic investment. There
for in the project it is tried to observe that whether the relationship between FDI and Indian
stock market is high or low. To know about this, correlation coefficient is calculated for
sensex and FDI investment for 6 years. It is observed that every year, the correlation co-
efficient is high. There we can say that, by increasing foreign direct investment, India can
develop more.
69
BIBLIOGRAPHY
Text Books:
• International finance ------ Alen c. Shapiro

• International finance ------ Shailaja
• International business ------ Francis Cherunilam
• international business environment ----- Paul Weatherly
Journals:
• Indian finance journal
• ICFAI journal
Website:
• Www. BSE india.com
• Www. DIPP.AC.IN
70

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INTRODUCTION

What are the motivations for FDI flows into India?

The sub objectives of the study are

• To review the major reasons for attracting FDI;

However, a good way for them to survive is by offering FDI equity to

Secondary method: The secondary data collection method includes:

• The study focuses on FDI in India only.

covered in detail in the limited time given.

FDI plays an important role in economic growth of an economy. Literature on factors

Why India Needs FDI

❖ Offsetting the capital deficiency

❖ Acquiring advanced technology

Advantages of Foreign Direct Investment Inflows in India:

✓ Foreign Direct Investment in greenfield ventures, has introduced technological

✓ Increase in Domestic Employment/Drop in unemployment

✓ Investment in Needed Infrastructure.

✓ New Technology and “Know How” Transfer.

✓ Increased Capital Investment.

✓ Targeted Regional and Sectoral Development

Disadvantages of FDI in India:

✓ Industrial Sector Dominance in the Domestic Market.

✓ Technological Dependence on Foreign Technology Sources.

✓ Disturbance of Domestic Economic Plans in Favor of FDI-Directed Activities.

✓ “ Cultural Change” Created by “Ethnocentric Staffing” The Infusion of Foreign Culture ,

India is potentially active in terms of investments and provides a galore of opportunities to

Market Potential in India for Attracting FDI Inflows:

Investment Options For NRIs In India

Some of the investment options available to NRIs in India are:

• Investment in the Indian equities markets, including IPOs

• Investment in mutual funds

• Company fixed deposits and non-convertible debentures of companies

• Real estate investments

• National Savings Certificates issued by post offices in India

• Deposits in Indian banks

1. Bank Fixed Deposits (FD):

4. National Saving Certificate (NSC):

Increased Standard Of living Through FDI In India:

Main Reasons Why India Attracts FDI:

1. To achieve transfer of technology and management techniques

2. To reduce dependency on aid

II. Wholly Owned Subsidiaries

A. Joint Venture With An Indian Partner

• Established distribution/ marketing set up of the Indian partner

• Available financial resource of the Indian partners

B. Wholly Owned Subsidiary Company

Foreign Companies can set up their operations in India through:

A. Liaison office/ Representative office

• Rendering professional or consultancy services

• Carrying out research work, in which the parent company is engaged.

• Promoting technical or financial collaborations between Indian companies and parent or

• Rendering services in Information Technology and development of software in India.

India FDI Policies:

1. Valuation of Convertible Instruments:

2. Issue of Shares Against Investment in Kind and Incorporation Experiences:

(a) import of capital goods/machinery/equipment (including second-hand machinery); and

(b) pre-operative/ pre-incorporation expenses (including payments of rent, etc.)

3. Removal of No objection Certificate from previous ventures:

a. Companies owned or controlled by foreign investors, and

b. Companies owned and controlled by Indian residents.

5. Sector Specific Changes:

• FDI in multi-brand retail continues to be prohibited.

• FDI in LLPs still not permitted.

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