An Empirical Investigation of Foreign Institutional Investor's Influence In Indian Equity Market

Abstract

In the year 1990-91, Indian government set out liberalization and economic reforms with a view of bringing about fast and significant economic growth and move towards globalization of the economy. This paper investigated the long-term relationship between three Foreign Institutional Investment variables namely Gross Purchase, Gross Sales, Net Investment and Indian Equity Market. The study used annual data from 1^st April 2006 to 31^st March 2016. Descriptive Statistics, Trend Analysis, Unit root test (ADF Model), Autocorrelation, Regression used for the study. The study made an attempt to analyze the influence of foreign institutional investors on Indian equity market.