A study on the determinants of foreign institutional investment inflows into india crisis marked a regime shift in the determinants of fii flows to india with the. Impact of foreign institutional investors (fiis) on indian among macroeconomic determinants, economic growth of india has positive impact on fiis investment in. The present study aims at exploring the determinants of foreign institutional investors' (fiis) investment in india returns on indian stock market have positive impact whereas us stock market returns have no significant influence on fiis investment to india stock market risk has negative.
India livelihoods-based study wins fii data challenge grand prize intermedia is pleased to announce the winners of the 2014 fii. Trends of fpi components in india 1992-1993, the fiis were allowed to enter indian capital market resulting into rise in fii investment in india 1997-98 and 1998-99, there was sudden decrease in fii inflows due to impact of asian crisis 1999-2000 fii flows to india rejuvenated till 2001-02. Rai and bhanumurthy (2004), in their research paper titled determinants of fii in india: the role of return, risk, and inflation, tried to examine the determinants of fii flows in india the researchers attempted to examine the.
Foreign institutional investors fii is defined as an institution organized outside of india for the purpose of making investments into the indian securities market under the regulations prescribed. The literature that analyses the determinants of portfolio flows (fpi) to india has concentrated on the fii component only adr/ gdr flows have not received much attention despite the fact that the indian. Financial inclusion in india: a demand side approach we attempt to identify some determinants of borrowing from formal sources insights from the 2016 fii. The firm-level determinants ownership by foreign institutional investors and the domestic firm characteristics fii ownership in indian equity securities: the.
Impact of fii on stock market in india determinants of foreign institutional investment in india: the role of return, risk and inflation, development. Indian economy, especially at time of globalisation when india is emerging as one of the leading market for investors in asia as with pros there is always some cons with everything, fiis have some loop holes because. 1 1 fii flows in indian equity markets: boon or curse 1viral v acharya, v ravi anshuman, and k kiran kumar the principal risk facing india remains the inward spillover from global financial market. Corporate governance determinants of fii in indian it firms there have been no notable studies in india regarding the fii inflow determinants this study aims to fill the gap.
The present study examines the role, impact and relationship of fii's and indian capital market, and also determinants of foreign institutional investment in india, a country that opened its economy to foreign capital following a foreign exchange crisis. Foreign institutional investors: the indian experience the government of india is pursuing the policy of liberalization, simplification and providing of level playing field to indian as well as foreign institutions interested for investing in india in view of changing globalization of trade and commerce. The determinants of foreign institutional investment (fii) in india are exchange rate, domestic inflation, returns of domestic equity market and risk and return associated with us equity market.
Wp/10/187 determinants of foreign direct investment: a sectoral and institutional approach james p walsh and jiangyan yu. _____determinants of foreign direct investment in india 83 on imperfect market the perfect market assumes that there exists competition for investment, equal opportunity, and there is equal return on investment across the. Impact of foreign institutional investment on indian stock market dr h n shivprasad director, determinants of fii and concluded that (1. In 2008-09, it was the huge reversal in fii flows that created havoc in the indian financial markets and led to a sharp decline in the total portfolio investment flows to india however, 2009-10 saw a massive revival of fii flows to india.
Dissertation report on foreign direct investment & its impact on indian economy submitted to uttrakhand technical university in partial fulfilment of master of business administration. The economy, fii inflows have actually imposed certain burdens on the indian economy understanding the determinants and effects of fii flows and devising appropriate regulation therefore constitute an important part of economic policy making in india. Kulwant rai and bhanumurthy have conducted a study on determinants of foreign institutional investors (fii) in india the researchers found that fii inflows basically depends upon three main economic indicators that are stock market returns, inflation rates (both domestic and foreign) ex-ante risk. Determinants of foreign institutional investors in the context of india they found that fii inflow depends on stock market returns, inflation rates (both domestic and foreign) and ex-ante risk.