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Foreign Investment In Automobile Industry Essay

1351 Words6 Pages

A Study on “Impact of Foreign Exchange Exposure on Profitability of Selected Indian Automobile companies”, with respect to Consortium Securities Bangalore.
The recent trend in globalization has risen to international trade and investment tremendously last few decades. The flow of goods and services across various national boundaries is possible only if there is good functioning monitory system in the country.
Indian automobile industry is globally one of the largest industry and key sector for economy. Foreign exchange is the mechanism by which the currency of one country gets converted into another country. The conversion may have the impact on Automobile companies’ stock price. There are many important factors which affect the exchange rate. The last two last two years have seen Indian Rupee decreasing to some extent. Currencies like US Dollar, euro etc. have subsequently recovered to certain extent. …show more content…

It is therefore most important to see how various policies enunciated at various times have created employment opportunities directly and indirectly in this fast changing Automobile sector. This research paper attempts to understand the inventory of policy responses of the government especially related to FDI in automobile sector.
Need For the Study:
As foreign exchange exposure has become so popular that new models are brought to India very often. So the impact of foreign exchange on Indian stock market has affected the fluctuation in the stock price. This study is taken to learn the foreign exchange impact on automobiles companies to see the level of fluctuation in the stock price. Many investors are confused on investment in automobile sector. So to overcome the investment fear or to know about the investment opportunities to the investors, and to check whether there is any impact of foreign exchange on stock prices in

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