A Study on relationships between stock market and foreign investment in India

Abstract

Examining how the Indian stock market interacts with foreign investment is a deep dive into the complex web of relationships that makes up India's economy. Due to its size and development potential, the Indian stock market, as reflected by indexes like the Nifty and Sensex, plays a vital role in luring international investors. In turn, the success of the stock market is greatly affected by foreign investment. This research is expected to investigate the effects of regulatory changes, economic circumstances, and geopolitical events on the stock market in relation to foreign direct investment (FDI) and foreign institutional investment (FII). Foreign direct investment into the Indian stock market may be studied in terms of its many entry points such portfolio investments, M&As, and strategic collaborations. Policymakers, investors, and enterprises operating in India's financial markets would benefit greatly from a deeper understanding of these interrelationships. Foreign investment in the Indian environment presents both dangers and possibilities that may be better understood via study of this kind, which in turn can lead to better economic decisions and more development.