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Dynamics of Foreign Portfolio Investment and Stock Market Returns During the COVID-19 Pandemic - Evidence From India

Author

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  • Prabheesh KP

    (Indian Institute of Technology Hyderabad, India)

Abstract

This paper examines the causality relation between stock returns and foreign portfolio (FPI) flows in the Indian context during the COVID-19 pandemic. Using daily data and the Toda and Yamamoto Granger causality test, the study finds that unidirectional causality runs from FPI flows to stock returns during the pandemic.

Suggested Citation

  • Prabheesh KP, 2021. "Dynamics of Foreign Portfolio Investment and Stock Market Returns During the COVID-19 Pandemic - Evidence From India," Asian Economics Letters, Asia-Pacific Applied Economics Association, vol. 1(2), pages 1-5.
    • Handle: RePEc:ayb:jrnael:17
    DOI: 2021/06/27
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    covid-19; foreign portfolio investment; stock returns;
    All these keywords.

    JEL classification:

    • I1 - Health, Education, and Welfare - - Health
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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