Published Paper Details:

Abstract To carry out changes in the growth of foreign investments has become the striking measure of economic development and is witnessing the changes in the developed countries. Following the path of developed countries, many developing countries are also permitted to inflow foreign capital into the country. India also is not far behind in this, like other developing countries India also permitted foreign investors to invest in India in 1991 under the Foreign exchange Management Act (FEMA). As a result, the inflow of foreign capital into the country is increased and becomes an important source of finance in India for the development of key economic sectors which is experienced through the stock market. But as we have seen that at the time of a downturn in the stock market, the flow of FII and FDI becomes negative which declines the economic activities and causes huge losses for the domestic investors. So the current study is an attempt to find out the behavior of macroeconomic indicators on the indices of the Indian stock market during the stock market downturn and identify the hedging instrument needed for the domestic investors to protect from the losses from the stock returns.