LIMITATIONS OF STUDY Existing studies of the relationship between crude oil prices and market returns suffer from

three limitations. (1) We cant conclude that the crude oil price is the only variable which impacts the stock market. There are many variables like inflation , FII FDI, political issues , government monetary polices etc which are also Influence the stock market. (2) Many previous empirical and theoretical models of the link between oil prices and stock prices have been constructed under the premise that one can think of varying the price of crude oil, while holding all other variables in the model constant . In other words, oil prices are treated as strictly exogenous with respect to the global economy. This premise is not credible. There are good theoretical reasons and there is strong empirical evidence that global macroeconomic fluctuations have influenced the price of crude oil since the 1970s. For example, it is widely accepted that a global business cycle expansion (as in recent years) tends to raise the price of crude oil. The fact that the same economic shocks that drive macroeconomic aggregates (and thus stock returns) may also drive the price of crude oil makes it difficult to separate cause and effect in studying the relationship between oil prices and stock returns. (3) Even if we were to control for reverse causality, existing models postulate that the effect of an exogenous increase in the price of oil is the same, regardless of which underlying shock in the oil market is responsible for driving up the price of crude oil.

RESEARCH METHODOLOGY In order to does the research on movement of stock market (Sensex) with the movement of crude oil price, FII, FDI, Inflation. We have study the last three year 1st April 2006 to 31st March 2009.
RESEARCH METHODOLOGY In order to does the research on movement of stock market (Sensex) with the movement of crude oil price, FII, FDI, Inflation. We have study the last three year 1st April 2006 to 31st March 2009. Data Description To study the market movement we have collected the secondary data from various sources. in the present study we have taken the last three year (2007- 2010) BSE-30 (sensex) monthly wise closing data from the BSE. And the monthly wise crude oil closing data from the BSE and the monthly wise crude oil price from the energy information administration year (2007-2010) and we have taken the monthly wise FII movement from RBI. And the past event the stock market information has been taken from various news bulletins, magazines, journal, and websites. Method In this study we have taken the BSE-30 (Sensex) as dependent variable and crude oil price, FII, and as well as past Sensex closing price as independent variable. To find out the relation between dependent variable and independent variable, we have run the regression model with the help of SPSS software and also we find the correlation between dependent variable and independent variable, coefficient of variation and T-test by using these statistical tools we will prove whether all the independent variable impact the dependent variable or not. HYPOTHESIS TESTING Let the null hypotheses is Ho== All the independent variable doesnt have any impact on stock market (Sensex). And Alternative hypothesis is H1== All the independent variable have impact on stock market (Sensex).