Bombay stock exchange, exchange rate, foreign institutional investment: a trend analysis

Capital is considered as a nerve of any economy. In case of developing country like India Domestic capital is not sufficient to fulfill the requirement of economy. In that case foreign capital plays a very important role.1 The time series data on total Bombay Stock Exchange index, Exchange Rate, Foreign Institutional Investment and GDP for India. The time period of the present study has taken for analysis is the 14 years period from 1998 to 2012. To study the extent of time series data on total FII, Exchange Rate, BSE index number in to India, to be more specific this study describe the FII, Exchange Rate, BES index number in forms of actual value, index number and monthly growth rate and trend analysis through simple linear regression model and semi log linear regression model. To the relationship between the FII, Exchange rate, BSE and Economic growth through correlation and Regression models, first the regression model is fitted by taking the GDP as on the dependent variable for the set data.