Towards Investment Decision: A Study Deployed on FII Inflows in India

The Indian market is steadily growing and had allured domestic investors community and foreign investors group in the past. The major part of investment in Indian market is attributed to institutional investors among whom foreign investors are of primary importance. One eminent concern in the matter is whether these foreign investors (FII) direct the Indian stock market. This paper examines whether market movement can be explained by FII inflows and their impact on the stock markets. The analysis has been made through the application of regression statistics and graphical representations which concludes that there is a high degree of correlation between Sensex and FII inflows trends.