Download or read book Impact of FII Flows on Indian Capital Market written by Vaishali Jain and published by . This book was released on 2015 with total page 11 pages. Available in PDF, EPUB and Kindle. Book excerpt: The progress and prosperity of a nation is reflected by the pace of its sustained economic growth and development which is provided by investment. Not only foreign exchange domestic savings but the magnitude and quality of foreign investment is also necessary for the well being of a country. The Foreign Institutional Investors (FIIs) have emerged as important players in the Indian equity market in the recent past and are gradually becoming one of the major factors that contribute towards the growth of the financial markets, more so in developing economies like India. The main objective was to study the effect of FII flow on capital markets, extent of Granger Causality between FII flows and capital market growth and lead-lag relationship between FII flows and NSE Nifty. The database used for the study is composed of the monthly data of FII flow and NSE Nifty. While selecting the sample certain criteria were followed. While collecting data for FII flows, data pertaining to the equity investment only was used. The data used was collected integration have been computed with the help of Gretl and other relevant software available for statistical analysis. The results of the study did imply that FII investment and NIFITY were influenced by various other macroeconomic fundamentals on the basis of which growth were studied and in any way did not have any causal relationship with each other.

Download or read book Impact of FII Flows on Indian Capital Markets written by Vaishali Jain and published by . This book was released on 2015 with total page 11 pages. Available in PDF, EPUB and Kindle. Book excerpt: The progress and prosperity of a nation is reflected by the pace of its sustained economic growth and development which is provided by investment. Not only foreign exchange reserves, exports, government's revenue, financial position and available supply of domestic savings but the magnitude and quality of foreign investment is also necessary for the well being of a country. The Foreign Institutional Investors (FIIs) have emerged as important players in the Indian equity market in the recent past and are gradually becoming one of the major factors that contribute towards the growth of the financial markets, more so in developing economies like India. The main objective was to study the effect of FII flow on capital markets, extent of Granger Causality between FII flows and capital market growth and lead-lag relationship between FII flows and NSE Nifty. The database used for the study is composed of the monthly data of FII flow and NSE Nifty. While selecting the sample certain criteria were followed. While collecting data for FII flows, data pertaining to the equity investment only was used. The data used was collected from SEBI and major stock exchanges' websites. Findings of stationarity, causality and co integration have been computed with the help of Gretl and other relevant software available for statistical analysis. The results of the study did imply that FII investment and NIFITY were influenced by various other macroeconomic fundamentals on the basis of which growth were studied and in any way did not have any causal relationship with each other.

Download or read book Foreign Investors Under Stress written by Ila Patnaik and published by International Monetary Fund. This book was released on 2013-05-22 with total page 31 pages. Available in PDF, EPUB and Kindle. Book excerpt: Emerging market policy makers have been concerned about the financial stability implications of financial globalization. These concerns are focused on behavior under stressed conditions. Do tail events in the home country trigger off extreme responses by foreign investors – are foreign investors `fair weather friends'? In this, is there asymmetry between the response of foreign investors to very good versus very bad days? Do foreign investors have a major impact on domestic markets through large inflows or outflows – are they ‘big fish in a small pond’? Do extreme events in world markets induce extreme behavior by foreign investors, thus making them vectors of crisis transmission? We propose a modified event study methodology focused on tail events, which yields evidence on these questions. The results, for India, do not suggest that financial globalization has induced instability on the equity market.

Download or read book FII Flows to Indian Capital Market written by Gurmeet Singh and published by . This book was released on 2016 with total page 15 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study investigates the cause and effects of foreign institutional investors' investment in Indian by finding the relationship between the foreign institutional investment and financial and real economy variables over the period from January 2007 to March 2014. Johansen's co-integration and vector error correction model have been applied to explore the long-run equilibrium relationship between FII flows and macroeconomic and financial variables. The analysis reveals that the FII's investment in India & variables under the study are co-integrated and, hence, a long-run equilibrium relationship exists between them. It is observed from the VECM that in the long-run, the relationship between the FII investment in India and wholesale price index, index of industrial production and exchange rate are positive. In the Granger causality sense, FII's investment in India causes WIP, Exchange Rate causes FII's investment and there is bidirectional causality exists between FII's investment and index of industrial production. While the findings show the evidence of causality from FII flow to wholesale price index in both long-run and short run but not other way around. Furthermore, it is observed from the findings that FII flow causes exchange rate in long run only. Exchange rate also decides the FII flows in short run.

Download or read book STUDY OF IMPACT OF FOREX FII written by Nisar Munshi and published by Lulu.com. This book was released on 2012-11-24 with total page 86 pages. Available in PDF, EPUB and Kindle. Book excerpt: Study of Impact of Forex and Foreign Institutional Investor by Dr. Nisar Munshi

Download or read book Foreign Institutional Investors FIIs and Capital Market in India written by Kulwant Singh Phull and published by . This book was released on 2014 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Since the 1990s, one of the major forces changing the face and structure of international capital markets has been the flow of cross-border portfolio investments, especially by Foreign Institutional Investors (FIIs) from developed countries to the developing economies. Portfolio investors provide institutional character to the capital markets, flavored by highly intensive research and diversified investments. FIIs are specialized financial intermediaries managing savings collectively on behalf of investors, especially small investors, towards specific objectives in terms of risks, returns, and maturity of claims. FIIs make investments in various countries to provide a measure of portfolio diversification and hedging to their assets. The forces driving the recent change in the investment portfolio of FIIs - as reflected in the growing emphasis on equities of emerging market economies - include, inter alia: (a) increased accessibility of these markets after liberalization, (b) improved marketability, (c) fewer problems relating to thin trading, and (d) improved macroeconomic fundamentals of recipient countries. This book provides a detailed account and examination of various dimensions, determinants, deterrents, and other aspects of investment flows into India through FIIs.

Download or read book INDIAN STOCK MARKET AND INSTITUTIONAL INVESTMENTS written by Dr. Sridhar Ryakala and published by Zenon Academic Publishing. This book was released on 2017-12-01 with total page 133 pages. Available in PDF, EPUB and Kindle. Book excerpt: Global integration, the widening and intensifying of links between high-income and developing countries has accelerated over the years. Over the past few years, the financial markets have become increasingly global. The Indian market has gained from foreign inflows through the investment of Foreign Institutional Investors (FIIs). Following the implementation of reforms in the securities industry in the past few years, Indian stock markets have stood out in the world ranking. During the past few years India has emerged as one of the world’s fastest growing economies. The increasing interest of foreign players in the domestic broking industry is a testimony of the stock market’s growth. The Indian stock market has also received a thrust from rise in business transactions over the years, because of sharp drop in brokerage fees and transaction costs, launch of a slew of new products, and a robust regulatory environment. The importance of institutional investors’ particularly foreign investors is very much evident as one of the routine reasons offered by market analysts’ whenever the market rises, it is attributed to foreign investors' money and no wonder we see headlines like "FIIs Fuel Rally" etc., in the business press. This is not unusual with India alone as today’s most developed economies might have seen a similar trend in the past. Domestic institutional investors on the other hand being another important section of institutional investors are playing a vital role in the Indian stock market. These investors have emerged as important players in the Indian stock market and their activities are influencing the market. There are many instances where this section of investors has stabilized the market conditions on one hand whereas their moves took the market to destabilized position on the other hand. Therefore, both FIIs and DIIs have become the most important determinants in the functioning of the Indian stock market. Thus, increasing role of these institutional investors has brought both quantitative and qualitative developments in the stock market viz., expansion of securities business, increased depth and breadth of the market, and above all their dominant investment philosophy of emphasizing the fundamentals has rendered efficient pricing of the stocks. Hence, there is a need to examine how investments made by these two groups of institutional investors’ impact each other as well as stock market returns. This book is an attempt in that direction.

Download or read book Impact of International Financial Flows on Indian Stock Markets An Empirical Study written by K.S.Venkateswara Kumar and published by . This book was released on 2013 with total page 13 pages. Available in PDF, EPUB and Kindle. Book excerpt: FDI and FII have become instruments of international economic integration and stimulation. Fast growing economies like Singapore, China, Korea etc have registered incredible growth at onset of FDI. Though US captures most of the FDI inflows, developing countries still account for significant growth of FDI and rise in FII. FDI not only gives access to foreign capital but also provides domestic countries with cutting edge technology, desired skill sets, tools of innovation and other complementary skills. The policies drafted to stimulate the flow of foreign capital in to India provided much needed impetus for India to emerge as an attractive destination for foreign investors. External factors such as global economic cues, FDI & FII, Exchange rate and Internal factors such as demand and supply, market cap, EPS generally drive and dictates the Indian stock market. The current paper makes an attempt to study the relationship and impact of FDI & FII on Indian stock market using statistical measures correlation coefficient and multi regression for 12 years data starting from 2001 to 2012. Sensex and Nifty were considered as the representative of stock market as they are the most popular Indian stock market indices.

Download or read book Impact Of Inflows Outflows Of FIIs On Indian Capital Market written by Rahul Singh and published by LAP Lambert Academic Publishing. This book was released on 2014-03 with total page 52 pages. Available in PDF, EPUB and Kindle. Book excerpt: An economy, apart from everything else, is a highly fluid transmission mechanism. Its beauty lies in how the smallest of changes have the most complex trickle-down effects. A paradigmatic example of how seemingly minor policy changes can jump start the economy can be illustrated by examining the effects liberalization on capital market in India. The study is going to facilitate the organization in its service quality by knowing about the impact on Indian secondary market due to the fear factor of FIIs. This will help the organization a lot as it will give a clear view of how much it affects our market and the reflection of the Stock Market in the past few years due to FIIs. For the study purpose, I have taken NIFTY & SENSEX i.e. the National Stock Exchange (NSE) & Bombay Stock Exchange (BSE) as benchmark Index in Indian Capital Market.

Download or read book Impact of Global Capital Flows on Indian Real Estate and Stock Market written by Taral Pathak and published by . This book was released on 2015 with total page 16 pages. Available in PDF, EPUB and Kindle. Book excerpt: The last two decades have witnessed unprecedented amount of international capital flows into emerging economies with an altering trend from official capital flows to private flows, leading to a shift in the nature of the capital flows from long-term to short-term. Concomitant with these trends is the increasing incidence of financial crisis and its contagion effect. The present paper examines the impact of Foreign Institutional Investment (FII) on the variations in the BSE Index, its volume, return, and market capitalization. It also looks into the variations caused in the housing prices [as measured by Consumer Price Index (CPI) of the housing sector and bank credit due to Foreign Direct Investment (FDI) flows]. Monthly data from January 2004 to December 2013 is subjected to a Granger causality approach to investigate the causality between Foreign Institutional Investment (FII) flow, FDI flow and other macroeconomic variables like Foreign exchange reserves, Money supply, and Foreign exchange rates. The Augmented Dickey Fuller (ADF) test has been used to test the stationary nature of data and Johansen's Co-integration Test is used for validating the association of various macroeconomic variables. The results indicate that housing price index granger causes FDI flow in India, while the reverse is not true, though FDI and FII when combined do have a lagged impact on the housing sector. Conversely the FII flows do not granger cause the BSE returns. Neither does the BSE return cause FII flows to India. There is no causality observed between FII flows and the BSE market capitalization, although FDI and FII taken together granger cause the foreign exchange rate and a unidirectional causality from Foreign exchange reserves to FDI and FII flows is noted. It is also observed that money supply, as measured by M3, granger causes FDI and FII flows to India, while the reverse causality is not seen, that is, FDI and FII flows do not granger cause money supply.

Download or read book Use of Participatory Notes in Indian Equity Markets and Recent Regulatory Changes written by Manmohan Singh and published by International Monetary Fund. This book was released on 2007 with total page 20 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper focuses on the use of participatory notes (PNs) by foreign investors, as a conduit for portfolio flows into Indian equity markets for more than a decade. The broadening of India's foreign investor base, in recent years, has a bias towards hedge funds/unregistered foreign investors who invest primarily via PNs. While tax arbitrage via capital gains tax has almost disappeared since July 2004, it is intriguing to note that since then the demand for PNs has actually increased. The paper suggests some reasons for the continuation of a buoyant market in PNs, and explains the possible impact from the recent regulatory changes.

Download or read book Impact of Foreign Institutional Investors on Indian Capital Market written by U. Brahmam and published by . This book was released on 2018 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: An important feature of the development of capital market in India in the last 20 years has been the growing participation of Institutional Investors. investors comprise both foreign institutional investors and the domestic institutional investors. In India, these institutional investors manage large amount of funds which constitutes a significant share of the entire market capitalization. Impact of these investors especially FIIs in Indian capital market has been a matter of debate. FII investments seem to have influenced the Indian capital market to a considerable extent. This paper makes an attempt to understand whether there exists a relationship between FII and capital market returns in India. Here, will see the impact of FIIs movement on index prices through the analysis of historical investment of FIIs and historical prices of BSE SENSEX and NSE NIFTY.

Download or read book FII Investment in India written by Dr. Jayesh Desai and published by . This book was released on 2016 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: In India in 1990s in its major policy shift started allowing foreign investment in its financial markets. This led to Foreign Institutional Investors (FII) gradually investing in Indian stock market and starting of a new era in Indian stock markets. Today FIIs have emerged to be one of the most dominant groups of investors with ownership of significant component of traded securities. Nevertheless flow of FII investment in Indian stock market has not remained same throughout. In this context, this paper tries to study trend of FII investment over the period of time. It also tries to find out structural changes in the investment flow of FIIs. Investigation is also done to find if multiple structural breaks are present in FII investment flow over the period of time. Study also tries to identify growth in Investment flow of FII in Indian stock market since liberalisation and it's impact on stock market return.

Download or read book An Assessment of FII Investments in Indian Capital Market written by Harendra Kumar Behera and published by . This book was released on 2013 with total page 15 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper reviews the policies for foreign portfolio investments and empirically assess the impact FIIs investments on Indian equity market. Particularly, the study tries to examine the effects of FIIs investment on equity return, stock market liquidity and volatility. Using monthly data and ordinarily least square, the study found that FIIs investments have a positive impact on both returns and liquidity. However, the GARCH estimates from daily data suggest FIIs investments increase volatility in Indian stock market.Investments by foreign institutional investors (FIIs) witnessed a marked expansion over the years. Ever since the opening of the Indian equity markets to foreigners, net FII investments have steadily grown from about Rs. 13 crores in 1992-93 to over Rs.66,000 crore in 2007-08 before it turning to a net disinvestment of Rs. 45,811 crore in 2008-09, on an annual basis. In subsequent period, it increased sharply to Rs. 1,46,438 crore in 2011-12. With the increase in limit of FIIs investments in corporate debt and Government securities, the investments in debt component also increased significantly from Rs. 29 crore in 1996-97 to Rs.49,988 crore in 2011-12, on an annual basis. This buoyant foreign investment flows into the country have continued to demonstrate the high level of confidence that the international investors repose in the Indian economy and as also norms for FII investments have been progressively relaxed. On the other hand, large reversal of FII inflows during 2008-09 global crisis, made balance of payments management difficult and led the Indian rupee to depreciate significantly.

Download or read book Dynamic Interactions Between Foreign Institutional Investment Flows and Stock Market Returns The Case of India written by Hemantkumar P. Bulsara Bulsara and published by . This book was released on 2015 with total page 28 pages. Available in PDF, EPUB and Kindle. Book excerpt: There has been a marked increase in the magnitude of Foreign Institutional Investments (FIIs) into India since the 1990s, resulting in increased forex reserves and liquidity and a higher-valued Indian capital market. However, such investment is more volatile than other types of flows, causing disruptive effects in the form of sudden stops (for example, the crash of the Indian stock market on January 21, 2008). This study empirically examines the dynamic relationship between FIIs and Indian stock market returns. It also analyses the effects of FIIs on Indian capital market returns, using data from January, 2004 through September, 2012. The analysis employs a Cross Correlation Function (CCF) approach, a Granger Causality Test and Vector Auto Regression after dividing the data into two parts: Pre Global financial crisis and Post Global financial crisis periods. The results of the CCF suggest bi-directional causality between FIIs and Nifty returns, whereas the Granger Causality Test and the VAR analysis suggest uni-directional causality running Nifty returns to FIIs.

Download or read book Financial Innovations and Its Impact of Global Crises on Indian Capital Markets written by Anli Suresh and published by . This book was released on 2013 with total page 16 pages. Available in PDF, EPUB and Kindle. Book excerpt: One of the bedrocks of our financial system is financial innovation and financial innovation is the life blood of efficient and responsive capital markets. The last 25 years have witnessed acceleration in the process of financial innovation. This has been spurred largely by increased volatility of exchange rates, interest rates and commodity prices and an increase in the pace of tax and regulatory change. Financial innovation enhances the allocation efficiency of the financial intermediation process and improves the operational efficiency of the financial system by reducing the costs and/or risk of transactions in the primary and secondary markets in which financial instruments are traded. Financial innovation is necessary to achieve a high and stable rate of growth through financial sector development in Emerging Market Economies (EMEs). India's financial markets - equity market, money market, forex market and credit market - experienced the knock-on effects of the global financial crisis. The equity markets and forex markets came under pressure because of the reversal of capital flows as part of the global deleveraging process. With the reversal of capital flows and drying up of external sources of funds, corporate shifted to domestic bank credit. This substitution of overseas financing by domestic financing brought both money markets and credit markets under pressure. In this paper, financial innovations and its impact of the crisis on various financial market segments in India and policy responses to contain the damage and restore normalcy have been analyzed. The study is based on the hypothesis that Foreign Investors are confident about the Indian Capital market conditions that they divert funds to other profitable and more secured destinations. The concluding remark is that Indian Financial Markets affected by the current global crisis from January 2008 largely because of selling pressures by FIIs, besides weakened domestic sentiments because of turmoil in international financial markets.

Download or read book Foreign Institutional Investors FII and The Indian Stock Market written by Paramalakshmi Devi and published by LAP Lambert Academic Publishing. This book was released on 2012-05 with total page 176 pages. Available in PDF, EPUB and Kindle. Book excerpt: Foreign Institutional Investors (FII) and The Indian Stock Market An Economic Study SUMMARY Foreign Institutional Investor (FII) is used to denote an investor - mostly of the form of an institution or entity, which invests money in the financial markets of a country different from the one, where in the institution or entity was originally incorporated. FII investment is frequently referred to as hot money for the reason that it can leave the country at the same speed at which it comes in. In countries like India, statutory agencies like SEBI have prescribed norms to register FIIs and also to regulate such investments flowing in through FIIs. Foreign Exchange Management Act (FEMA), norms includes maintenance of highly rated bonds (collateral) with security exchange. Foreign Investment refers to investments made by residents of a country in financial assets and production process of another country. After the opening up of the borders for capital movement these investments have grown in leaps and bounds. But it had varied effects across the countries. It can affect the factor productivity of the recipient country and can also affect the balance of payments.