Attention to Economic Factors and Its Response to Foreign Portfolio Investment: An Evidence from Indian Capital Market
- Title
- Attention to Economic Factors and Its Response to Foreign Portfolio Investment: An Evidence from Indian Capital Market
- Creator
- Pachiyappan S.; Kandral A.; Shylaja H.N.; Raj V J.P.; Vellayan S.
- Description
- Stock market consists of a variety of investors. Among these, Foreign Portfolio Investors (FPIs) is a key investment influx. These investments can change or fluctuate due to several macroeconomic factors which can cause a shift in the dynamics of the markets in India. This paper examines the factors influencing for foreign portfolio investment in long run as well as short run. The sample comprises of 120 monthly observations on Foreign Portfolio Investment (FPIs) and Macro economic variables such as Oil prices (OP), Gross Domestic Product (GDP), Interest Rate (IR), Exchange rate of Indian Rupee with USD (ER), Inflation (CPI), Nifty Index (NSEI), 10year Bond Prices (BP) and Index of Industrial production (IIP) over a period of 10years, spanning from January 2013 to November 2022. The study employed Autoregressive Distributed Lag model (ARDL) to establish the long run association with error correction models. The result indicates that there is long run association between the Foreign Portfolio Investment and macro-economic variables. Among this, NSEI, IIP and ER played a significant role to determine FPI investments in the long run, whereas in the short run, FPI was impacted by ER and NSEI significantly. The Author(s), under exclusive license to Springer Nature Switzerland AG 2024.
- Source
- Studies in Systems, Decision and Control, Vol-440, pp. 659-676.
- Date
- 2024-01-01
- Publisher
- Springer Science and Business Media Deutschland GmbH
- Subject
- Equity and debt market; FPI; India; Macroeconomic factors
- Coverage
- Pachiyappan S., School of Business and Management, CHRIST (Deemed to be University), Bannerghatta Road Campus, Bangalore, India; Kandral A., School of Business and Management, CHRIST (Deemed to be University), Bannerghatta Road Campus, Bangalore, India; Shylaja H.N., Department of Commerce, Manipal Academy of Higher Education, Manipal, India; Raj V J.P., School of Business and Management, CHRIST (Deemed to be University), Bannerghatta Road Campus, Bangalore, India; Vellayan S., School of Business and Management, CHRIST (Deemed to be University), Bannerghatta Road Campus, Bangalore, India
- Rights
- Restricted Access
- Relation
- ISSN: 21984182
- Format
- Online
- Language
- English
- Type
- Book chapter
Collection
Citation
Pachiyappan S.; Kandral A.; Shylaja H.N.; Raj V J.P.; Vellayan S., “Attention to Economic Factors and Its Response to Foreign Portfolio Investment: An Evidence from Indian Capital Market,” CHRIST (Deemed To Be University) Institutional Repository, accessed February 23, 2025, https://archives.christuniversity.in/items/show/18151.