The author analyses the relationship between foreign institutional investment and stock returns in india (bse) with the aid of daily data from january 2006 to june 2008. Bse sensex and fii investment correlation sensex is the commonly used name for the bombay stock exchange sensitive index - an index composed of 30 of the largest and most actively traded stocks on the bombay stock exchange (bse. 44 a study on foreign institutional investment flows and stock index 12ngopinathan, dr s sambasiva rau 1research scholar, sathyabama university, chennai - 600119 2professor, sathyabama university, chennai - 600119. Bse sensex, fii (foreign institutional investment), relationship among different foreign stock exchange which are from the uk, usa and japan for the purpose of analyzing the data a period of 3 months (ie from.
From the data interpretation and analysis we can come to theconclusion that the correlation between the net investment made byforeign institutional investors and the values of the bse sensex is 39%and hence the inflow made by fii affects the bse sensex. Favor among investors as attractive investment destinations for foreign institutional investors (fiis) the bse-sensex and further the study finds that there is. The data for the study uses the information obtained from the secondary resources like website of bse sensex we attempted to explain the impact of foreign institutional investment on stock market. Movement by foreign institutional investors (fiis) dornbusch and park (1995), radelet and sachs(1998) the stock market shows more reaction to foreign investment as the.
Institutional investment, gross domestic product, foreign exchange reserve, bse market capitalization, bse sensex return and degree of openness variables are used for this study the. Foreign institutional investment and movement of sensex and nifty are closely correl ated in india the movement of fii s has signif icant influence on the m ovement of stock market indices w hen. This study investigates the trading behaviour of foreign institutional investors (fiis) and domestic institutional investors (diis) in the indian stock market and also the relation between stock returns and equity flows by fiis and diis. Purpose of the study: the foreign institutional investment (fii) has emerged as a noteworthy instrument in the indian stock market since the liberalization of the indian economy and its increasing contribution adds as an important feature to the development of stock market in india. A fii registered as a debt fund from the above study the same sectoral limits which apply to foreign direct investment would continue to apply the investments made by foreign institutional investors do not impact much on both the indian stock markets bse sensex and nse nifty during the period under study.
The present paper is a modest attempt to study the trends in foreign institutional investment into india it is observed that the fiis investment has shown significant improvement in the liquidity of stock prices of both bse and nse. The data for the study uses the information obtained from the secondary resources like website of bse sensex research instrument karl pearson' coefficient of correlation test. The study investigates the relationship between the indian stock market performance (bse sensex) and five macroeconomic variables, namely, index of industrial production, wholesale price index, gold price, foreign institutional investment and real effective exchange rate over. (2002) explores relationship of foreign institutional investment (fii) flows to the indian equity market and found that return in the indian equity market is indeed an important factor that influences fii flows into the country.
In order to study the impact of foreign institutional investments on indian stock markets two models were framed and fitted in model 1 fii is the independent variable and sensex is the. Impact created by foreign institutional investors and domestic bse sensex and nse nifty over eight financial foreign institutional investment in the indian equity. Selected macroeconomic factors on the foreign institutional investment in india and it is believed that the insight offered by this study will help to identify the important determinants of fii inflows into india. Foreign institutional investors as key determinants investment from abroad study found that to so that bse sensex and investment by foreign.
Net investment, bse sensex, nse s&p cnx nifty statistical analysis is carried out to find the association between fiis and sensex, nifty during the study period. Paper examines the contribution of foreign institutional investment in sensitivity index (sensex) also attempts to understand the behavioral pattern of fii during the period of 2001 to 2010 and examine the volatility of bse sensex due to fii. However foreign investment was found to be negatively associated with real exchange rate, market capitalisation, trade degree of openness and institutional quality in nigeria. Market, it is due to foreign institutional investors' investment and there is a decline in stock market, it is due to withdrawal of money by foreign institutional investors keywords: fiis, p-notes, stock-market/capital market, nse, sebi etc.
Investment-wise, provisional data with the exchanges showed that foreign institutional investors bought scrip worth rs 1,09056 crore and domestic institutional investors bought stocks worth rs. India is a favourite investment place for foreign institutional investors foreign institutional investors are the investors who invest their fund in the recipient country and who are registered. Monitoring of foreign investment limits new historical data bse stocks gainers & losers home markets equity live reports gainers gainer - group wise.