• Vani Vasakarla

Indian monetary market has seen a rare volatility within the previous couple of years. Since the year 2002, Indian market has fully grown from a far volatile condition to growth phenomena, from a SENSEX purpose of 5500 in December 2003 to 13,787 in December 2006 and crossed the mark of 20,000 within the year 2007 and once more in 2013. Because of varied reasons, the exchange has conjointly intimate with forceful decline to even but 8,000 points in 2008. It’s not due to solely the domestic market however additionally the international investors. There are several alternative variables that contribute to the positive growth of the exchange. FIIs investment is taken into account to be one amongst the most important factor the economic development factors. There’s no doubt that the easement of the FII flows into the Indian capital Market since 1993 has had a substantial impact on Indian exchange. Since the worldwide crisis (2008) emerged within the world economy, the inflows of foreign investors inflated in developing countries and Asian country wasn't the exception in terms of giant investment by foreign investors. India’s capital market recognized as associate rising market within the world and growing quick since the economic easement and economic process in 1991. Since 1993, once easement policies came in to result and Indian market opened for foreign investment, the FIIs become the thrust for the general development of economy still as cause threat within the development. This paper tries to investigate the impact of currency fluctuations on the investment by the foreign investment investors, for analyzing the impact and causative relationship, augmented Dickey-Fuller test and relation test has been applied, and for analyzing FIIs role within the development of capital of India market simple regression model has been used. When applying the relation take a look at, we have a tendency to found that FII causes rate of exchange. As so much as relation relationship thinks about, a unidirectional relation or unidirectional relation is found from FII towards charge per unit. As so much because the causative relationship between the FIIs and SENSEX, FII square measure solely answerable for up to sixty.8%. This implies that no matter changes have happened within the SENSEX for amount underneath study the FII are accountable up to 60.8%. This suggests that there are several different macro-economic factors that have indirectly affected the SENSEX in India.

Key words: FII, BSE Sensex, volatility, exchange rate, macro economic factors,

"AN EMPIRICAL STUDY ON RELATIONSHIP BETWEEN FII’S, EXCHANGE RATE (USDINR) AND INDIAN STOCK MARKET (SENSEX)", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.6, Issue 2, page no.245-254, February-2019, Available :http://www.jetir.org/papers/JETIR1902343.pdf

"AN EMPIRICAL STUDY ON RELATIONSHIP BETWEEN FII’S, EXCHANGE RATE (USDINR) AND INDIAN STOCK MARKET (SENSEX)", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.6, Issue 2, page no. pp245-254, February-2019, Available at : http://www.jetir.org/papers/JETIR1902343.pdf