Do Domestic Institutional Investors (DIIs) Neutralize the Impact of Large Reversal by Foreign Institutional Investors (FIIs)? Recent Evidence from Indian Stock Market

2020 ◽  
Author(s):  
K Dhananjaya
Keyword(s):  
Stock Market ◽  
Institutional Investors ◽  
Foreign Institutional Investors ◽  
Indian Stock Market ◽  
The Impact

scholarly journals Impact of Foreign Institutional Investors on the Volatility of Indian Stock Market using GARCH Model

2018 ◽  
Vol 5 (01) ◽  
Author(s):  
Prateek Kumar Bansal ◽  
Om Prakash Agrawal
Keyword(s):  
Stock Market ◽  
Institutional Investors ◽  
Unit Root Test ◽  
Garch Model ◽  
Strong Relationship ◽  
Stock Market Volatility ◽  
Augmented Dickey Fuller ◽  
Foreign Institutional Investors ◽  
Indian Stock Market ◽  
The Impact

Foreign institutional investors have played an important role in the development of Indian stock market. In this paper, we study the relationship between the FII capital flows and the volatility of Indian stock market. To conduct the study, daily Index and trading data of SENSEX, NIFTY and FIIs was collected for fifteen years from April 1, 2001 to March 31, 2017. After testing for data stationarity using Augmented Dickey–Fuller test (ADF) unit root test, different statistical tools were applied such as S.D., mean, variance, skewness, correlation and GARCH model for testing the impact of FIIs flows on stock market volatility. The study concludes that there is strong relationship between the FIIs and the stock market return. Further, positive correlation exists between the variables and volatility transmission is there from FIIs to both the indices.

scholarly journals FIIs and Indian Stock Market: A Causality Investigation

2012 ◽  
Vol 14 (4) ◽  
pp. 5-24 ◽  
Author(s):  
Minakshi Paliwal ◽  
S. D. Vashishtha
Keyword(s):  
Stock Market ◽  
Capital Flows ◽  
Institutional Investors ◽  
Capital Gains ◽  
Market Returns ◽  
Causality Test ◽  
Stock Market Returns ◽  
Foreign Institutional Investors ◽  
And Performance ◽  
Indian Stock Market

While the volatility associated with portfolio capital flows is well known, there is also a concern that foreign institutional investors might introduce distortions in the host country markets due to the pressure on them to secure capital gains. In this context, present chapter attempts to find out the direction of causality between foreign institutional investors (FIIs) and performance of Indian stock market. To facilitate a better understanding of the causal linkage between FII flows and contemporaneous stock market returns (BSE National Index), a period of nineteen consecutive financial years ranging from January 1992 to December 2010 is selected. Granger Causality Test has been applied to test the direction of causality.

A Study of Union Budget Impact on Indian Stock Market

2016 ◽  
Vol 11 (01) ◽  
Author(s):  
Ashish Kr. Jha
Keyword(s):  
Stock Market ◽  
Institutional Investors ◽  
Budget Impact ◽  
Fiscal Deficit ◽  
Weight Estimation ◽  
Economic Event ◽  
Volatility Index ◽  
Retail Investors ◽  
Foreign Institutional Investors ◽  
Indian Stock Market

This study focused on the event of Union budget on Indian stock market, the analysis has been made between a periods of 2012- 13 to 2015-16. Union Budget is considered to one of the major economic event which takes place every year. The direction of Indian economy is drafted by government of India through Union Budget. Volatility index (Vix) of the index was observed high throughout the month of February every year. Sharp differential Measures indicate that the performance of market goes to one direction after budget announcement and its analysis by the investors. Regression weight estimation initiated that Indian growth is influenced by the fiscal deficit. This analysis is useful for the equity investors namely Retail investors, Domestic Institutional investors (DII), Foreign Institutional Investors (FII) etc.

scholarly journals A study on the asymmetry of the news aspect of the stock market: Evidence from three institutional investors in the Taiwan stock market

2015 ◽  
Vol 62 (3) ◽  
pp. 361-383 ◽  
Author(s):  
Tzu-Yi Yang ◽  
Yu-Tai Yang
Keyword(s):  
Stock Market ◽  
Institutional Investors ◽  
Bad News ◽  
Good News ◽  
Institutional Trust ◽  
Investment Behavior ◽  
Entire Sample ◽  
Daily Data ◽  
Foreign Institutional Investors ◽  
The Impact

This paper uses daily data to investigate the behavior of institutional investors in Taiwan?s stock market. We adopted TGARCH and EGARCH models to test various news. We found that, for the entire sample, a significant clustering phenomenon exists in the investment behavior of three institutional investors, and the impact due to a change of news content shows significant asymmetry and leverage effects. That is, the impact of bad news from the market is stronger than that of good news. In addition, an asymmetric phenomenon can also be seen for the international news aspect as responded to by foreign institutional investors. This phenomenon is more significant than those of the dealers and institutional trust investors. Moreover, the asymmetric phenomenon as responded to by the dealers for domestic news is more significant than those of foreign investors and institutional trust investors.

Do Local Investors Exhibit Smart Value Investment? Empirical Evidence from India

2020 ◽  
pp. 097215092091533
Author(s):  
Ajay Kumar Chauhan ◽  
Barnali Chaklader
Keyword(s):  
Stock Market ◽  
Empirical Evidence ◽  
Positive Feedback ◽  
Institutional Investors ◽  
Smart Money ◽  
Foreign Institutional Investors ◽  
Indian Stock Market ◽  
Daily Returns ◽  
Investment Behaviour ◽  
Feedback Trading

We have studied the investment behaviour of ‘foreign institutional investors’ (FIIs) and ‘domestic institutional investors’ (DIIs) in the Indian stock market for positive feedback trading and smart money value investments. We have collected the daily investment of FII and DII in Indian stock markets along with NIFTY daily returns. We have used multivariate causality approach VAR and found that FII investments follow positive feedback trading approach whereas DII follow smart money value investments in the Indian stock market.

Insider Trading: A White-Collar Crime and its Impact on Share Market

Think India ◽  
2014 ◽  
Vol 17 (3) ◽  
pp. 22-24
Author(s):  
Sreekumar Ray
Keyword(s):  
Stock Market ◽  
Insider Trading ◽  
White Collar Crime ◽  
White Collar ◽  
Adverse Impact ◽  
High Ranking ◽  
Internal Information ◽  
Indian Stock Market ◽  
The Impact

Since inception, the growth of the Indian stock market has been constrained through unethical, illegal and self-actualized activities of swanky persons involved in different capacities in the market. The stock market was trying to retrieve itself from the devastating effect of Harshad Mehta share market scam, when within a gap of ten years it was once again pushed into the darkness of the dungeon by another demon-child of the country- Ketan Parekh. Corporations have been looted by the insider traders, diversifying internal information to an external in lieu of cash. Investigations in the majority cases have proved the involvement of the high ranking officers of the companies in the crime, sophistically referred to as white-collar crime. It has an adverse impact on the growth and sustainability of the share market. Under the light of the above issue, this paper endeavors to study the impact of such crime on the share market. It focuses on the mechanism behind the insider-trading, its impact on the share market and the regulators supervision on the issue. Finally, suggestions have been provided which will contribute towards the dream of every Indian-a fraud-free share market focusing towards the overall development of the country.

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