Article Details

Effects of Foreign Institutional Investors on the Promotion of Indian Capital Market | Original Article

Jitender .*, in Journal of Advances and Scholarly Researches in Allied Education | Multidisciplinary Academic Research

ABSTRACT:

Being a one of the fast growing economy in the world, India attracts a large sum of FII every year. These foreign investments have a great impact on the economy of India. Indian Stock Market, which is one of the indicators of the economic status, is also being affected by the foreign investments made. So this study has been done to validate the null hypothesis that there is no significant impact of FIIs in the promotion of Indian capital market and there is no significant impact of FIIs investment on BSE Sensex. Researcher take secondary data in this study and the data will be collocated through websites of NSE, BSE etc. The sample size which is taken in the research study is the financial statement of last fifteen years (2004 to 2018) of related concern from the Foreign Institutional Investments and Indian capital market. On the basis of data it is found that that there is a significant difference in respect to FIIs investment in debt and equity in Indian capital market. Although FIIs were allowed in debt in year 1997, but they have been found to be more interested in equity rather in debt as FIIs have mainly invested in equity in the whole period of this study.