13. We will use this model for understanding the relationship between FII and stock indices returns. FII is taken as independent variable. Stock indices are taken as dependent variable
14. Hypothesis Test: If the hypothesis holds good then we can infer that FIIs have significant impact on the Indian capital market. This will help the investors to decide on their investments in stocks and shares. If the hypothesis is rejected, or in other words if the null hypothesis is accepted, then FIIs will have no significant impact on the Indian bourses.Conclusion<br />CONCLUSION<br />A large number of changes that were introduced in the country’s regulatory economic policies heralded the liberalization era of the FDI policy regime in India and brought about a structural breakthrough in the volume of the FDI inflows into the economy maintained a fluctuating and unsteady trend during the study period. It might be of interest to note that more than 50% of the total FDI inflows received by India , came from Mauritius, Singapore and the USA. <br />The main reason for higher levels of investment from Mauritius was that the fact that India entered into a double taxation avoidance agreement (DTAA) with Mauritius were protected from taxation in India. Among the different sectors, the service sector had received the larger proportion followed by computer software and hardware sector and telecommunication sector. <br />According to findings and results, we have concluded that FII did have significant impact on Sensex but there is less co-relation with Bankex and IT. One of the reasons for high degree of any linear relation can also be due to the sample data. The data was taken on monthly basis. The data on daily basis can give more positive results (may be). Also FII is not the only factor affecting the stock indices. There are other major factors that influence the bourses in the stock market.<br />Recommendations & suggestions<br />Recommendations & suggestions<br />Limitations of research<br />Limitations of research<br />Bibliography<br />www.rbi.org<br />www.fin.in.nic<br />www.sebi.org<br />http://books.google.co.in/books?id=0VUafaE3pOIC&pg=PA4&dq=types+of+foreign+direct+investment&hl=en&ei=efzrS_rEAoy5rAfv34DbBg&sa=X&oi=book_result&ct=book-thumbnail&resnum=1&ved=0CDUQ6wEwAA#v=onepage&q=types%20of%20foreign%20direct%20investment&f=false<br />http://www.indiahousing.com/fdi-foreign-direct-investment.html<br />http://finance.indiamart.com/investment_in_india/fdi.html<br />http://www.answers.com/topic/foreign-direct-investment#History<br />http://www.unctad.org/sections/dite_iiab/docs/diteiiab20041_en.pdf<br />http://www.economywatch.com/foreign-direct-investment/<br />http://www.legalserviceindia.com/articles/fdi_india.htm<br />Annexure<br />