Can Foreign Direct Investment (FDI) in Indian Power Industry Impact its Stock Market Performance? An Empirical Study

Authors

  • Anandaraj Saha
  • Satabdee Banerjee

DOI:

https://doi.org/10.33516/rb.v42i1.53-60p

Keywords:

FDI, Granger Causality, Impulse Response, Power Sector, Stationary, VAR, VECM.

Abstract

The Indian power sector has been undergoing a momentum change in the recent time. The Central Government has also decided to take major steps to provide power supply even in the remote villages of India. Not only in consumption side, but also Indian power sector has also performed well in production of power and electricity in India. Since the opening up of the economy, this sector has been performing well. Presently Indian Govt. has allowed hundred percent FDI in power sector. The study aims to address the debating issue whether FDI has improved the power sector stock market performances or vice versa. The study found that although power sector equity markets primarily provided the impetus to FDI, but in long-run FDI flows in equity market has impact on the stock market performance of power sector stocks.

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Published

2016-04-01

How to Cite

Saha, A., & Banerjee, S. (2016). Can Foreign Direct Investment (FDI) in Indian Power Industry Impact its Stock Market Performance? An Empirical Study. Research Bulletin, 42(1), 53–60. https://doi.org/10.33516/rb.v42i1.53-60p

Issue

Volume 42, Issue 1, April 2016

Section

Articles
Crossref
Scopus
Google Scholar
Europe PMC

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