An Emperical Investigation of Impact of Net FIi investment on Performance of Indian Stock Market of BSE

Abstract

This paper examines the impact of the foreign institutional investors' {Flis) on the Indian stock markets. Flis have been allowed to invest in the domestic financial market since 1992; An important feature of the development of stock market in India in the last 15 years has been the growing participation of Institutional Investors, both foreign institutional investors and the Indian mutual funds combined together, the total assets under their management amounts to almost 18%of the entire market capitalization. The decision to open up the Indian financial market to Fil portfolio flows was influenced by several factors such as the disarray in India's external finances in 1991 and a disorder in the country's capital market.