Impact of FII on Indian Economy/Stock Market?


Authors : Aditya Vimal

Volume/Issue : Volume 7 - 2022, Issue 8 - August

Google Scholar : https://bit.ly/3IIfn9N

Scribd : https://bit.ly/3L7Td3G

DOI : https://doi.org/10.5281/zenodo.7067749

Abstract : The prosperity and success of a country are represented by the measures of its continuous growth of the economy, which is fueled by investment. Foreign reserves, government revenue, exports as well as the quantity and nature of foreign investment are all very crucial for a nation's well-being. The FIIs have recently risen as significant stakeholders in the capital market of India. They are increasingly becoming one of the primary elements contributing to the expansion of financial markets, particularly in developing nations like India. Through this paper, our foremost goal was to analyze the affect of Foreing institutional investors on the equity market from the period 2011 to 2021. We have used various tests to study the effect. The study's findings suggested that FII investment and Nifty50 were highly influenced by the COVID-19 pandemic, which occurred during the period under study

Keywords : Attracted by the potential in India’s primary and secondary markets, FIIs have invested approximately Rs. 31,498 crore (around US$ 4.3 billion) in 2021-22 (Jain & Nair, n.d.) and became one of the largest drivers of the financial markets of India. In this paper, we will be analyzing how FIIs influence the Indian Stock Market and will be covering the effect of major events on their investing decisions.

The prosperity and success of a country are represented by the measures of its continuous growth of the economy, which is fueled by investment. Foreign reserves, government revenue, exports as well as the quantity and nature of foreign investment are all very crucial for a nation's well-being. The FIIs have recently risen as significant stakeholders in the capital market of India. They are increasingly becoming one of the primary elements contributing to the expansion of financial markets, particularly in developing nations like India. Through this paper, our foremost goal was to analyze the affect of Foreing institutional investors on the equity market from the period 2011 to 2021. We have used various tests to study the effect. The study's findings suggested that FII investment and Nifty50 were highly influenced by the COVID-19 pandemic, which occurred during the period under study

Keywords : Attracted by the potential in India’s primary and secondary markets, FIIs have invested approximately Rs. 31,498 crore (around US$ 4.3 billion) in 2021-22 (Jain & Nair, n.d.) and became one of the largest drivers of the financial markets of India. In this paper, we will be analyzing how FIIs influence the Indian Stock Market and will be covering the effect of major events on their investing decisions.

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