Drishtikon: A Management Journal

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Foreign Institutional Investment in the Indian Securities Market


Affiliations
1 Associate Professor, NIILM CMS
2 Assistant Professor,IILM CMS
     

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The Indian Markets have been the hotspot for investment. The continuous boom of the Indian markets had allured the domestic investment community and also increased the foreign investment. The major portion of investment in Indian markets is always attributed to the institutional players amongst whom the foreign investors are of primary significance. India being a capital scarce country, has taken a lot of measures to attract foreign investment and it opened up the economy for foreign capital after experiencing the foreign exchange crisis in 1990s. The continuous boom of the Indian markets had allured the domestic investment community and also increased the foreign investment. The major portion of investment in Indian markets is always attributed to the institutional players amongst whom the foreign investors are of primary significance. On September 14, 1992 India opened its doors to FIIs for investment in equity and debt securities. Since then, there have been large-scale investments by FIIs. However, their investment pattern has been characterized by wide fluctuations and has largely been unpredictable. This often created volatility in the market with unexpected results. In the present study, we are trying to analyze the trend and pattern of FII investments in the Indian securities market. For this, annualized data of Foreign Institutional Investments in equity and debt market have been reviewed and analyzed.

Keywords

Foreign Institutional Investors, Securities Market, Equity, Debt, NIFTY
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  • Foreign Institutional Investment in the Indian Securities Market

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Authors

Shruti Jain
Associate Professor, NIILM CMS
Kriti Swarup
Assistant Professor,IILM CMS

Abstract


The Indian Markets have been the hotspot for investment. The continuous boom of the Indian markets had allured the domestic investment community and also increased the foreign investment. The major portion of investment in Indian markets is always attributed to the institutional players amongst whom the foreign investors are of primary significance. India being a capital scarce country, has taken a lot of measures to attract foreign investment and it opened up the economy for foreign capital after experiencing the foreign exchange crisis in 1990s. The continuous boom of the Indian markets had allured the domestic investment community and also increased the foreign investment. The major portion of investment in Indian markets is always attributed to the institutional players amongst whom the foreign investors are of primary significance. On September 14, 1992 India opened its doors to FIIs for investment in equity and debt securities. Since then, there have been large-scale investments by FIIs. However, their investment pattern has been characterized by wide fluctuations and has largely been unpredictable. This often created volatility in the market with unexpected results. In the present study, we are trying to analyze the trend and pattern of FII investments in the Indian securities market. For this, annualized data of Foreign Institutional Investments in equity and debt market have been reviewed and analyzed.

Keywords


Foreign Institutional Investors, Securities Market, Equity, Debt, NIFTY

References