An Analytical Study to Examine the Influence of Foreign Institutional Investors on the Indian Capital Market

Author:Mohd. Mohsin Qureshia*, S.K.S. Yadavb

Abstract:
India's economy was globalised in 1991, and since then, the Indian capital market has attracted international investors, making it a desirable investment location for foreigners. Foreign investment is crucial for a country's development and essential since it expands the market's size. A well-organized financial market is a fundamental component of every country because it provides the country with the financial input it needs to produce products and services. The success or failure of a country's financial market determines the country's economic progress. The financial market is an important financial system since it is through it that a country obtains the majority of its short-term investment. In the present study we are trying to examine the influence of foreign institutional investors on the Indian capital market. This research is based on secondary data that covers 10 years, from 2012-13 to 2021-22. The study findings reveal the inverse and significant relationship between the FIIs net flow and Sensex Index.

Keywords:Key Words: Financial Market, FIIs, FIIs Net Flow, Sensex Index.

DOI:10.46333/ijtc/11/1/5

International Journal of Trade & Commerce (Vol: 11 Issue:1)