Download or read book Mutual Fund Investments FII Investments and Stock Market Returns in India written by Suchismita Bose and published by . This book was released on 2013 with total page 22 pages. Available in PDF, EPUB and Kindle. Book excerpt: Exploring the dynamic interaction between investment flows of mutual funds and foreign institutional investors (FIIs), based on post-crisis data, this study finds a strong negative relationship between the net investments by these two classes of institutional investors. Domestic mutual funds are found to determine their investment flows on the basis of their own previous investments, FII investments as well as market returns. The analysis suggests that the effect of stock market returns can be overshadowed by the effect of FII investments, in determining mutual fund flows. The study also finds evidence of net investments by FIIs having a causal influence on stock market returns even as it fails to identify any causal relation between domestic mutual funds' net investments and domestic stock returns. The conservative and contrarian pattern of mutual fund net investments in equity markets, as brought out by this study, indicates why equity mutual funds, as a group, have not provided a strong domestic alternative to foreign flows in the Indian stock market.
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 The Dynamics of Institutional Investments and Stock Market Volatility written by Pramod Kumar Naik and published by . This book was released on 2014 with total page 30 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study examines the dynamic interaction among institutional investment (FII and Mutual Funds) and the stock market returns for India in a three factor vector autoregression (VAR) framework. The data set used in this study are in daily frequency spanning from 1st Jan 2002 to 31st July 2012 and extracted from various sources such as PROWESS database of Center for Monitoring Indian Economy, the official website of Securities and Exchange Board of India (SEBI), Reserve Bank of India Official website and Bombay Stock Exchange. By considering the two types of flows (FIIs and mutual funds net equity investment) to be interdependent and hence form the endogenous part of the VAR system, we find that both mutual fund flows and the FII's fund flows are significantly influences Indian stock market. It is evident that the BSE returns (with lags) are positively influencing FII's flows but it turns to be negative in determining mutual fund investment flows during the study period. We observe similar kind of results after controlling for market fundamentals. The Granger causality analysis signifies a bi-directional causation between the institutional investment and stock market returns. The structural VAR impulse response analysis suggests that the response of Sensex return to both types of institutional investment flows are negligible or insignificant. However, the FII's net investment is positively responding to stock return about up to 3 days, and it is negatively responding to the mutual fund flows. The response of mutual fund net flows to stock return is initially positive but it turns to be negative in the next two days. It responds negatively to the FII net flows.
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 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 Indian stock market and mutual fund basic written by Deepak shinde and published by deepak shinde. This book was released on with total page 145 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book is all about fundamental and technical basic on Indian stock market .The topic of this books as following 1)Investment basic -- why should investment ? -- when should start investment ? --what are various types of investment ? 2) Indian economy today and in future -- GDP / GDP growth -- Inflation data -- Types of deficit -- IIP data -- FDI -- FII -- Future of india economy 3) Stock market basic -- NSE& BSE -- NIFTY 50 & SENSEX -- Index -- Revenue, EBIT, Net profit ,OPM -- Cash and debit balance -- Types of Issue ( IPO,FPO,RIGHT etc ) -- Face value -- Types of ratio 4) Sectors and Index -- IT index -- Auto index -- Bank nifty index ( repo,r repo ,slr ,crr ) -- Oil and gas index -- Capital good and construction index -- FMGC -- Metal index -- Real estate index -- Power index -- Telecom index 5) technical of market -- 50&200 DMA -- Support & resistance -- Chart & volume -- Head and shoulder pattern -- Trend 6) Future and option -- Lot size -- E date -- Margin -- Rollover -- Future market -- Call option -- Put option -- Hegging 7) Element that effect the market 8) Element that should consider at time of Investment and trading -- Budget -- Man soon -- Types of trade ( short,medium and long ) 9) balance sheet Analyzing 10) Types of investment -- Mutual fund and SIP -- Forex market ( $ ,euro ) -- commodity market MCX ( gold, silver, crude oil ,steel ,natural gas ) -- Dead market ( ETF , BOND , Bank FD ) --
Download or read book Layman s Guide to Stock Market Investment written by Swati Dubey and published by Vij Books India Pvt Ltd. This book was released on 2012-10-10 with total page 258 pages. Available in PDF, EPUB and Kindle. Book excerpt: Content Introduction to Stock Market The Benefits of Long Term Trading Vs Short Term Trading Economics of Trading in Stock Substitutes Management of the World Trading Systems Reverse Mortgage Guide to Mutual Funds Stock Picking Strategies Mutual Funds Transperancy in India
Download or read book Portfolio Flows Into India written by Mr.James P. F. Gordon and published by International Monetary Fund. This book was released on 2003-01-01 with total page 39 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper analyzes the factors affecting portfolio equity flows into India using monthly data. Flows to India are small compared to other emerging markets, but seem to be relatively less volatile. They also seem to be quite resilient. The paper shows that portfolio flows are determined by both external and domestic factors. Among external factors, LIBOR and emerging market stock returns are important, while the primary domestic determinants are the lagged stock return and changes in credit ratings. In quantitative terms, both external and domestic factors are found to be about equally important.
Download or read book The FII s and Indian Stock Market Returns written by Sunaina Kanojia and published by . This book was released on 2015 with total page 20 pages. Available in PDF, EPUB and Kindle. Book excerpt: With integration of national and international market, the Indian stock market has witnessed a phase of exponential growth and expansion post globalization, which has been continuing since then. Today, Indian economy ranks the third largest economy in the world making the Indian markets a platform of enormous opportunities for growth in returns. The investments by global participants is an evident part of any prevalent economy in the present time and investment by FIIs has increased the breadth and depth of the Indian stock market and the movement by FIIs has lead the Indian investors in the similar movement. The present paper investigates the relationship between net investments by FIIs and return on BSE 100 Index for the period from 1st April 2000 to 31st March, 2012 using monthly data. The Granger Causality test has been used to find relationship between net investment by FIIs and return on BSE 100 Index. The empirical investigation reveals that the net investments by FIIs granger cause the return on BSE 100 Index. The results highlight that investment by FIIs series the return on BSE 100 Index series has hugely varied during the boom, crisis and post crisis time period. Further, the result of regression test suggests that the net investments by FIIs have a positive and significant impact on the return on BSE 100 Index.
Download or read book Mutual Funds in India written by Nalini Prava Tripathy and published by Excel Books India. This book was released on 2007 with total page 284 pages. Available in PDF, EPUB and Kindle. Book excerpt: This well organised, lucidly written textbook explains the basic concepts of mutual fund, operational policies, practices, investment in securities, some aspects of portfolio management, selection, mutual fund marketing, and detailed analysis of the latest developments in mutual fund industries. Apart from this, the book is well equipped with the fundamentals of research with details of statistical tools required for analysis in research work.This comprehensive book is intended as a text for students of management, research scholars, and is a useful reference for practising managers and investors as well as finance professionals who have an interest in this increasingly expanding area. It would also be immensely useful to those pursuing professional courses in marketing and finance area.Key Features:v Pedagogically rich to help students retain and apply chapter conceptsv Comprehensive coverage of Indian financial regulatory bodies and practicesv Discusses in detail about the current status of development and future prospects of mutual fund industry in Indiav Provides exercises to test the students grasp of the subjectv Cases in the Indian contextv Highlights latest trends with figures and tables
Download or read book The Investment Technology of Foreign and Domestic Institutional Investors in an Emerging Market written by Ila Patnaik and published by International Monetary Fund. This book was released on 2013-04-22 with total page 38 pages. Available in PDF, EPUB and Kindle. Book excerpt: The literature on the investment technology of foreign versus domestic investors has inconclusive results. This paper revisits the question, with a focus on decomposing portfolio performance into asset allocation and security selection. We document signicant differences in exposure to systematic asset pricing factors between foreign and domestic investors. A quasi-experimental strategy is introduced, for comparing security selection after controlling for diferences in asset allocation. Our results show that foreign investors in India do remarkably poorly at security selection.
Download or read book The Relationship Between Mutual Fund Flows Foreign Institutional Investments and Stock Market Returns in India written by Sandra Valukaran and published by . This book was released on with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This thesis investigates the relationship between mutual fund investments, stock market performance and Foreign Institutional Investments in India, focusing on the period from April 2004 to October 2023. Examining three distinct hypotheses using regression and correlation analyses of secondary data, the study utilizes quantitative methodologies against the backdrop of India's booming mutual fund market. Key findings reveal a modest yet significant positive correlation between mutual fund inflows and stock index performances of NIFTY 50 and SENSEX. This suggests that while mutual fund investments impact stock market dynamics, they are not the sole determinants. Additionally, a positive correlation between mutual fund flows and historical stock market performance indicates a tendency towards momentum trading among investors. In contrast, an inverse relationship is observed between Foreign Institutional Investors flows and mutual fund inflows during financial crises,reflecting a defensive investor stance during market turbulence. These insights offer a comprehensive understanding of the Indian financial markets, highlighting the intricate interplay of various factors influencing investment trends. The research highlights the complexity of market dynamics in emerging nations and underscores the need for more investigation in this domain, which is of great importance to investors, fund managers, and regulators.
Download or read book Taxmann s Stock Market Wisdom Lessons from a Lifetime in Capital Markets 2020 Edition written by T.S. Anantharaman and published by Taxmann Publications Private Limited. This book was released on 2020-12-05 with total page 20 pages. Available in PDF, EPUB and Kindle. Book excerpt: Excerpts from the Preface: Q. How do you make a small fortune in the stock market? A. Start with a large one. A prime example of the Indian stock market’s potential is Infosys. If you subscribed to 100 shares of Infosys at its 1993 IPO at a price of INR 95 per share, you would own 1,02,400 shares of the company today. At an average price of INR 700 per share, that investment would now be worth over INR 7 Crores! Introduction: Taxmann’s Stock Market Wisdom highlights the great potential of the stock market while guiding investors to invest wisely and how to avoid its pitfalls. It is an attempt to assist investors to understand the following: • How the market system operates? • How one should invest money in it? • How one can generate wealth through it over the long term. The author has also explained how the markets have evolved, what their present stage is, where they’re headed, and, of course, how you can benefit, with the help of multiple case studies. • Featuring the following case-studies: 𝚘 India’s Top 25 Years Return Chart 𝚘 World stock exchange performance 𝚘 The Roller Coaster Journey of the SENSEX from 100 to 41,000 𝚘 Amazing story of Reliance Industries – The first Indian company to enter the 10 Trillion Market Cap Club 𝚘 Avenue Supermarts Ltd. – The company that defies gravity Reviewed by Motilal Oswal (Managing Director) | Motilal Oswal Financial Services Ltd. “For any new investor who is starting his journey in stock markets, or even an old investor who has not been yet able to decode investment success for himself, this is a fine book to start or restart the journey, as the case may be.” “The basics of investing and trading have been explained in a very lucid and simple manner and the complete spectrum of investing has been covered from history of the stock markets, the working of the stock markets, the basic of fundamental analysis, basics of technical analysis, concepts dividends, bonus, splits, buy backs, etc.” “Most importantly, a large part of this book is about behaviour analysis and how it impacts the investor returns in this fascinating journey of stock market investing.” Contents of the book are as follows: • Why should you invest in the Indian stock markets? • Evolution of the stock market in India • Market and Interest Behaviour • Right number of stocks in your portfolio • Invest in winners, do not chase losers • Buy it, Hold it, Forget it strategy • Low PE vs. High PE, which one should you buy? • Small vs. Large companies • Benefit from Beaten Down Stocks • Impact of current events on the stock price • Pricing power • Life expectancy of companies • Dividend decisions • Bonus shares, share split and right shares • Buyback of shares • Mutual funds and their relevance • Value investing • Investing in growth shares • Lessons in wealth creation from Warren Buffett • Trading vs. Investment • Sensible investments – practical points • Key to multi-bagger returns • Basics of fundamental analysis • Basics of technical analysis
Download or read book Institutional Investors and the Indian Stock Market written by S. S. S. Kumar and published by . This book was released on 2017 with total page 16 pages. Available in PDF, EPUB and Kindle. Book excerpt: An attempt is made in this paper to analyze and compare the different institutional investors' investments in the Indian stock market. The chief categories of institutional investors considered in the study are Foreign Portfolio Investors (FIIs), Domestic institutional investors (DIIs) and Participatory Note investors (PNIs). The results of the study indicate that DIIs are negatively correlated with both PNIs and FIIs while there is a positive correlation between FIIs and PNIs. Further both FII and P-Note investors' behavior is alike and they are predominantly short-term return seeking investors and fundamental factors are not found to be significantly explaining the changes in these inflows. The INR-USD exchange rate appeared to be the chief determinant of the PNIs and PNIs Granger causes FIIs. However in the case of domestic institutional investments are not influenced by the exchange rate. Further DIIs are not Granger caused by P-Note investments and FII investments. Therefore, it can be concluded that not all institutional investors act alike and the presence of DIIs in Indian market appears to be providing a kind of stability that is much needed in case of a sudden flight of foreign investments triggered by global events.
Download or read book Factors Affecting Investment Behaviour of Foreign Institutional Investors written by Mrunal Joshi and published by . This book was released on 2018 with total page 13 pages. Available in PDF, EPUB and Kindle. Book excerpt: Liberalization of economic policies in 1992 allowed foreign institutional investors investing in Indian capital markets. Though FII permitted to invest Indian stock markets in 1992, they actually started investing in India from 1997 and factual growth of FII investment came after 2002. Since then participation of FII in Indian stock market has continuously increased. They have emerged to be one of the largest investors and have acquired ownership of substantial proportion of non-promoter shares. They have also emerged to be dominant market players contributing very high proportion 41.73% of total stock exchange turnover of BSE and NSE combined. In Indian markets, FII are perceived to be very large and sophisticated investors with very high impact on stock market returns. Many investors and market participants tend to make their stock market strategy based on investment pattern of FII and base their stock market analysis on their perception about factors considered by FII in their investment decision. In this context this paper studies perception of market participants about major determinants of FII investment decision and extent to which investors are influenced by FII investment.
Download or read book FII Flow and Indian Stock Market written by Saurabh Singh and published by . This book was released on 2014 with total page 8 pages. Available in PDF, EPUB and Kindle. Book excerpt: In the age of global capitalism, substantial amounts of capital are flowing from developed economies to emerging economies like India. An important feature of the development of Indian stock market has been the escalating participation of Foreign Institutional Investors (FIIs) in the last 15 years. This paper tries to examine the direction of causality between flow of foreign institutional investment (FII) and Indian stock market returns i.e. whether FII flows causes variations in stock market returns or vice versa. Using monthly data of FII inflow, outflow, BSE Sensex and Nifty returns from April 2007 to October 2013, Granger-causality approach in a bi-variate VaR framework has been used to investigate the causality between FII flow and stock market returns. Augmented Dickey Fuller (ADF) test has been used to test whether the data is stationary or not. The outcome of the study was there is a bi-directional causality between FII movements and stock market returns.
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.
