The Research and Faculty Development Cell of the College arranged a presentation by Ms. Seema Dharani on her current work. Ms. Seema made a presentation of her paper titled “Foreign Inflows and Market Returns Relationship: Analysis of BRICS Nations”. The objective of the paper was to examine the causal relationship between FPI and Stock Market Index of BRICS nations, using monthly data for the period January 1999 to December 2019. The study uses VAR model, Impulse response, Variance Decomposition and Granger causality test to determine the short-term relationship. The results suggest that there is a unidirectional causal relationship running from Returns to FPI in case of India and finds a bidirectional causality in case of China.
The second objective of the paper examined the Volatility among the BRICS Market Indices and Impact of FPI on market volatility of these indices using monthly data, covering the period from January 1999 to December 2019. The study uses stationarity test (ADF and PP) to test for stationarity and the GRACH (1,1) model to check volatility. The results of the study point to FTSE/JSE top 40 African Index as being the most volatile. Further, the impact of FPI on market volatility is found to be significant and positive only in Russia and India.
The paper was published in the Proceedings of the ESN International Conference on Multidisciplinary Research ICMR-2020, Kandy Sri Lanka.
20 teachers attended the presentation on October 13, 2020 from 12-12.45 p.m.
