IMPACT OF FOREIGN INSTITUTIONAL INVESTORS ON INDIAN CAPITAL MARKET

ABSTRACT

This paper makes an attempt to develop an understanding of the dynamics of the trading behaviour of FIIs and effect on the Indian equity market. The study is conducted using daily data on BSE Sensex and Nifty and FII activity over a period of 10 years spanning from Jan 2003 to September 2013. It provides the evidence of significant positive correlation between FII activity and effects on Indian Capital Market. The analysis also finds that the movements in the Indian Capital Market are fairly explained by the FII net inflows.

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