Revisiting the impact of foreign portfolio investment on stock market performance during COVID-19 pandemic uncertainty: Evidence from India

Prabheesh, K P and Kumar, Sanjiv and Shareef, Ameen Omar (2023) Revisiting the impact of foreign portfolio investment on stock market performance during COVID-19 pandemic uncertainty: Evidence from India. MethodsX, 10. ISSN 2215-0161

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Abstract

This paper re-examines the causality between stock returns and foreign portfolio investment (FPI) flows in the Indian context during the COVID-19 pandemic. Using the Covid-19 index constructed by Narayan et al. [19] and the Toda and Yamamoto Granger causality test, the study reveals that bi-directional causality runs from FPI flows to stock returns in the early period of the Covid-19 pandemic. Whereas after the peak of the pandemic, there is a unidirectional causality that runs from FPI flows to stock returns. • Bi-directional causality runs from FPI flows to stock return during the initial period of COVID. • In the second period, unidirectional causality runs from FPI flows to stock returns

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IITH Creators:

IITH Creators	ORCiD
Prabheesh, K P	https://orcid.org/0000-0001-6323-8217

Item Type:

Article

Uncontrolled Keywords:

COVID-19-uncertainty; Foreign portfolio investment; New Measure of the COVID-19 Pandemic: A New Time-series Dataset; Stock returns; Article; causality; coronavirus disease 2019; human; India; investment; pandemic; price; stock market

Subjects:

Arts > Liberal arts

Divisions:

Department of Liberal Arts

Depositing User:

Mr Nigam Prasad Bisoyi

Date Deposited:

16 Aug 2023 11:27

Last Modified:

16 Aug 2023 11:27

URI:

http://raiithold.iith.ac.in/id/eprint/11557