Impacts of FIIs’ Investment volatilities on Indian Equity Market’s Bench Mark Index-BSE SENSEX before and after the Implementation of Goods and Service Tax in India

Abstract

FIIs have been very much positive on Indian markets since the beginning of 2019 and are expected to be net positive, as despite the slowdown, Indian the economy is expected to be one of the fastest growing economies in the world. In the past five years, FIIs had withdrawn funds only in 2018 from the Indian market due to the falling apart of Auto, IT and other durable product segments due to the impact of GST. The focus of this study is that “whether FPI or FII Investments creates impact or not on over all Indian Stock Market growth”. In order to prove this statement, FII Investments monthly data before and after the implementation of Goods and Service Tax and BSE SENSEX index points monthly data base before and after  the implementation of GST are taken in to account. Those data will be analysed by means of using analytics algorithms namely Simple linear regression, bivariate correlation and paired sample T-Test.