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 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 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 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 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 Re Examining the Impact of FII Investments on the Indian Markets written by S. S. S. Kumar and published by . This book was released on 2014 with total page 18 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines the impact of daily foreign institutional investors' (FIIs) investments on the Indian market from January 2010 through January 2014. The motivation for the study is that the past studies on this topic are based only on examining the relationship between FII investments in cash market and any associated effects on stock market returns while ignoring the FII activity in equity derivative markets. The impact of FIIs' investments on Indian markets is re-examined in this paper by considering FII activity in Nifty index futures that trade on National Stock Exchange of India (NSE) and Singapore Exchange (SGX). The results show that Nifty index returns are statistically influenced by FII investments in Nifty index futures. Further, Nifty index returns effect the FIIs' investments in Nifty index futures. Prima facie there is evidence of positive feedback trading behavior of FIIs. Hence, FIIs' index futures activity could be used to predict the Nifty returns. There is a contemporaneous relationship between FIIs investments in cash and index futures market. SGX futures are not found to be influencing Nifty but Nifty is a significant explanatory variable in SGX futures returns.

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 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 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 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 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 Foreign Institutional Investors and Indian Stock Market written by Amita Bodla and published by LAP Lambert Academic Publishing. This book was released on 2017-06-19 with total page 216 pages. Available in PDF, EPUB and Kindle. Book excerpt: India opened its stock markets to foreign institutional investors in September 1992 and since then Indian economy has emerged as a prominent market for the global investors. The presence of FIIs in stock market has always remained a hot and debatable issue. The present book is the outcome of an empirical research conducted to study the trends, magnitude and composition of FIIs in India over the last 20 years along with their impact on stock return and volatility. This book is organized into eight chapters. These are: Introduction, Review of Literature, Research Methodology, Growth and Composition of FII inflows in India, the Impact of the foreign institutional investors on market development, market capitalization and liquidity of Indian stock market, impact of foreign institutional investment on stock market return and volatility, Determinants of FIIs inflows to India and Major findings and Conclusion. It is expected that the book will be very beneficial for the research scholars, investors, academicians and policy makers.

Download or read book Influence Of Changes Of FDI And FII Flows On Indian Stock Market written by Baranidharan S and published by . This book was released on 2020 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: The inflow of Foreign Direct Investment and Foreign Institutional Investors has become a strong impression of economic development in both developing and developed countries. The research paper found that values of all variables were higher than 5; it clearly indicates that the variables were non-normal found out by using the Jarque-Bera test. The study exclaimed that there is unidirectional relationship between FDI returns and the nifty returns found out by granger causality test and it explains that FDI helps to predict Nifty returns. Policy makers can make economic enhancing and growth possible based on the research made on economic performance.

Download or read book Volatility of Indian Stock Market and FIIs written by Krishna Reddy Chittedi and published by . This book was released on 2010 with total page 14 pages. Available in PDF, EPUB and Kindle. Book excerpt: The paper analyzed a performance of the sensex vs. FIIs in Indian stock market and some of the most talked about movements of sensex starting with the secondary market summary of each year.FII s investments in BSE sensex reveal that the liquidity as well as volatility were highly influenced by FII flows. FIIs are significant factor determining the liquidity and volatility in the stock market prices. After going through all the analysis regarding the stock market in last 2 years, we can say that stock market touched its peak at 21000 but then crashed badly. Though the sensex is a barometer and after seeing such fluctuations one could be afraid of investing. So even after such downturns, we can be hopeful for a positive market.

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 Stock Market Volatility in India written by H. Kaur and published by Deep and Deep Publications. This book was released on 2002-09 with total page 320 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book ROLE OF FOREIGN INSTITUTIONAL INVESTORS FIIS IN INDIAN STOCK MARKET written by Ashish C. Makwana and published by Mr. Ashish C. Makwana. This book was released on 2023-01-22 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: The role of investment in encouraging economic growth has predictable considerable concentration in India since independence. But the role of foreign institutional investment in the economic development of India is a recent topic of debate. The issues of role of FIIs investments and volatility of Indian stock market have become increasingly central issues in recent times to financial practitioners, market participants, regulators and researchers.