Journal Press India^®

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This paper aims to analyze the relation between FII and Nifty50. An empirical investigation has been conducted to determine the cointegration and causality between FII and Nifty50 using Johansen’s cointegration and Granger causality techniques. Monthly data points spanning the year 2021 have been used for empirical investigation. Empirical results of the cointegration technique reveal no cointegrating equations between the FII and Nifty50. The results of Granger causality reveals that there is no significant relationship between FII and Nifty50. The results of this paper can be useful for retail investors, portfolio managers, and policymakers.

Keywords

Johansen Cointegration; Granger Causality; Adf Test; Indian Stock Market; Sensex Co-Integration; FII; Granger Causality; Stationarity; Nifty50

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