Impact of FII’s and FDI’s on Indian Stock Market

2016 ◽  
Vol 1 (1) ◽  
Author(s):  
Dr. Kamlesh Kumar Shukla
Keyword(s):  
Stock Market ◽  
Financial Markets ◽  
Global Economy ◽  
Short Term ◽  
Earnings Growth ◽  
The Past ◽  
Bull Market ◽  
Indian Stock Market

FIIs are companies registered outside India. In the past four years there has been more than $41 trillion worth of FII funds invested in India. This has been one of the major reasons on the bull market witnessing unprecedented growth with the BSE Sensex rising 221% in absolute terms in this span. The present downfall of the market too is influenced as these FIIs are taking out some of their invested money. Though there is a lot of value in this market and fundamentally there is a lot of upside in it. For long-term value investors, there’s little because for worry but short term traders are adversely getting affected by the role of FIIs are playing at the present. Investors should not panic and should remain invested in sectors where underlying earnings growth has little to do with financial markets or global economy.

scholarly journals Role of Framing towards Islamic Business Engagement in Asia: A Case of Pakistan

2020 ◽  
Vol V (III) ◽  
pp. 23-31
Author(s):  
Muhammad Awais ◽  
Waqar Haider Hashmi ◽  
Adeel Mustafa
Keyword(s):  
Stock Market ◽  
Primary Data ◽  
Research Paradigm ◽  
Short Term ◽  
Word Cloud ◽  
Short Term Investment ◽  
The Way

The aim of this study is to examine the phenomenon of framing as a cause of making wrong decisions while investing in Islamic stocks. Framing refers to the bias of people that describes the way they respond to a specific option as per its offer. After collecting primary data through interviews, including open-ended questions from the Pakistani stock market under the subjective or constructivist research paradigm, NVivo it is applied to get word cloud for appropriate analysis. The study finds that there are so many complexities and impurities that blindfold brokers and investors to differentiate between Shariah-compliant versus conventional stocks. This research can be further extended by differentiating between long-term and short-term investment horizons.

Linkages between India and three ASEAN Stock Markets: A Co-integration Approach

2015 ◽  
Vol 4 (1) ◽  
Author(s):  
Giridhari Singh Rajkumar
Keyword(s):  
Stock Market ◽  
Stock Markets ◽  
Short Term ◽  
Term Relation ◽  
Integration Test ◽  
Asean Countries ◽  
Indian Stock Market ◽  
The Relationship ◽  
Investment Choices

Today, an investor has an array of investment choices including the opportunities to approach overseas market which were unavailable a few decades ago. In literature, the integration of stock markets has been widely discussed and analyzed. This paper examines the relationship between Indian stock market and the three stock markets of the ASEAN countries viz. Indonesia, Malaysia, and Singapore. Using the daily closing prices of the indices over a period of ten years i.e. 2004 to 2014, the study examined the inter-linkages of Indian stock market with the three markets. The Granger-causality and co-integration test were used to check the causal relationship. The study found that there is a significant short-term unidirectional influenced from the Indian stock market to the three ASEAN countries stock markets while no long-term relation (no co-integration) are found between the Indian equity market with that of three ASEAN countries viz. Indonesia, Malaysia, and Singapore equity markets.

scholarly journals The Significance of Derivatives in the Management of the Value of Non-Financial Enterprises in Poland on the Age of Financialization

2019 ◽  
Vol 6 (1) ◽  
pp. 7-12
Author(s):  
Alina Rydzewska
Keyword(s):  
Global Economy ◽  
Value Management ◽  
Short Term ◽  
Central Statistical ◽  
Decision Making Processes ◽  
Central Statistical Office ◽  
Operational Activities ◽  
High Level

The turn of the 21st century is a period of the growing importance of finance in the global economy. The domination of the financial sphere about the real sphere is defined as financialization. The inflation of financial instruments, derivatives, in particular, is indicated among the symptoms of financialization. Financialization about companies is associated with the growing importance of financial motives in the decision-making processes of enterprises. The enlarging pressure of financial markets and investors forces transformations in the value management process. Companies raising capital from share issues are evaluated by investors (shareholders). In turn, management is entrusted to hired managers whose evaluation depends on the current results. To meet the requirements of the owners (shareholders), they stop taking into account the long-term development of a given undertaking and focus on achieving the required rate of return in the short term. Therefore, they limit their operational activities, and in particular long-term investment activities, in favour of short-term financial activities. They use derivatives as one of the forms of short-term profit generation. Their use is characterized by a relatively high level of risk resulting from the use of leverage in their construction. It also results in potential profits (or losses) many times higher than the capital employed. The purpose of this paper is to examine whether non-financial enterprises operating in Poland use derivatives in value management. The research was based on the analysis of indicators identifying the role of derivatives in the enterprise and determining their impact on the ROE ratio as a measure of value for shareholders. For this purpose, the financial statements of non-financial enterprises published in Poland by the Central Statistical Office for the years 2010-2017 were used.

scholarly journals Impact Of Union Budget On Indian Stock Market

2015 ◽  
Vol 2 (11) ◽  
pp. 21 ◽  
Author(s):  
Divya Verma Gakhar ◽  
Neha Kushwaha ◽  
Vinita Ashok
Keyword(s):  
Stock Market ◽  
T Test ◽  
Medium Term ◽  
Short Term ◽  
Statistical Tools ◽  
F Test ◽  
Indian Stock Market ◽  
The Impact ◽  
Paired T Test

This paper analyzes the impact of Union budget on NSE’s CNX NIFTY Index. The impact is measured in terms of daily average returns and volatility over the short term, medium term and long term period in pre and post budget period. The data has been collected for five budget periods from 2011 to 2015. The statistical tools used are paired T-test and F-test. Paired T-test is conducted on average returns and F-test is conducted on variances over the period i.e., 3, 10 and 30 days in pre and post budget period. The maximum impact of budget is seen in short term then it gradually decreases in medium term and finally diminishes in the long term. The implication of this paper is that the investor should fear from investing in the stock market around the budget period.

scholarly journals Do select macroeconomic factors drive momentum returns?

2021 ◽  
Vol 7 (1) ◽  
Author(s):  
A. Balakrishnan ◽  
Nirakar Barik
Keyword(s):  
Asset Pricing ◽  
Stock Market ◽  
Factor Model ◽  
Capital Asset Pricing ◽  
Short Term ◽  
Macroeconomic Factors ◽  
Macroeconomic Variables ◽  
Asset Pricing Models ◽  
Indian Stock Market

AbstractIn this paper, we examine the presence of short-term and long-term momentum returns in Indian stock market. The study also tries to shed light on the power of asset pricing models and select macroeconomic variables in explaining momentum returns. The results confirm the presence of short-term and long-term momentum returns in Indian stock market. It is also found that Carhart four-factor model’s performance is relatively superior to other factor models such as one factor capital asset pricing model and Fama–French three-factor model in terms of capturing momentum returns. Finally, macroeconomic variables which are considered for analysis do not have any power to explain momentum returns.

Working capital allocations and productivity: empirical issues and role of asset utilization

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Gaurav Singh Chauhan
Keyword(s):  
Firm Value ◽  
Relative Role ◽  
Working Capital ◽  
Short Term ◽  
Content Type ◽  
The Past ◽  
Marginal Impact ◽  
The Relationship

PurposeThe article highlights potential mismeasurement in working capital allocations among academicians and practitioners and revisits the relationship between firms' working capital and productivity, as evident from their values.Design/methodology/approachThe research design acknowledges the relative role of firms' working capital vis-a-vis other assets in generating revenue, thereby effectively accounting for the overall asset efficiency in influencing firm value. The authors use a multivariate framework to draw inferences from the marginal impact of working capital and its components on firm value while controlling for asset utilization.FindingsThe authors find that, after accounting for asset utilization, the marginal impact of working capital and its components on firm value is quite weak. The results are consistent with the hypothesis that firms' trade-off between short-term and long-term assets per se should not have any value implications. After controlling for their asset turnovers, the authors find that higher allocations to working capital relative to other assets are not necessarily value-destructive. The findings contrast with the past literature.Research limitations/implicationsThe article, through its analytical and empirical insights, suggests that working capital allocations should be measured by managers and academicians relative to firms' other asset rather than their sales. Firm values should, therefore, be compared based on firms' overall asset utilization rather than inter-temporal allocations to short-term versus long-term assets.Originality/valueContrary to the existing literature so far, the article explicitly acknowledges the relative role of firms' other assets, and hence the overall asset utilization, to infer the marginal impact of working capital on firm value.

scholarly journals The Expanded Role Of Financial Reporting In Global Markets

2011 ◽  
Vol 7 (3) ◽  
pp. 22
Author(s):  
Gail E. Farrelly
Keyword(s):  
Financial Markets ◽  
Financial Reporting ◽  
Global Economy ◽  
Global Markets ◽  
Professional Judgment ◽  
Present System ◽  
The Subject ◽  
Qualitative Dimension

Financial reporting in global economy is the subject matter of this essay. The present system provides information that is objective past-oriented, technically precise, and quantitative. What is needed for worldwide information demands in financial markets, however, is a system which recognizes the importance of a qualitative dimension and leans toward relevance in the reliability-relevance tradeoff. Long-term profit projections and plans should be highlighted; professional judgment should take precedence over technical precision.

Determinants of Trading Decision: An Experiential Examination

GIS Business ◽  
2018 ◽  
Vol 13 (1) ◽  
pp. 1-9
Author(s):  
Gunjan Sharma ◽  
Tarika Singh ◽  
Suvijna Awasthi
Keyword(s):  
Stock Market ◽  
Capital Markets ◽  
Capital Market ◽  
Capital Mobility ◽  
Influential Factors ◽  
Herd Behavior ◽  
Human Beings ◽  
The Past ◽  
The Government ◽  
Indian Stock Market

In the midst of increasing globalization, the past two decades have observed huge inflow of outside capital in the shape of direct and portfolio investment. The increase in capital mobility is due to contact between the different economies across the globe. The growing liberalization in the capital market leads to the growth of various financial products and services. Over the past decade, the Indian capital market has witnessed numerous changes in the direction of developing the capital markets more robust. With the growing Indian economy, the larger inflow of funds has been fetched into the capital markets. The government is continuously working on investor’s education in order to increase retail participation in the Indian stock market. The habits of the risk-averse middle class have been changing where these investors started participating in the Indian stock market. It is an explored fact that human beings are irrational and considering this fact becomes imperative to investigate factors that influence the trading decisions. In this research, ‘an attempt has been made to investigate various factors that affect the individual trading decision’. The data has been collected from various stockbroking firms and from clients of those stockbroking firms their opinions were recorded by means of a questionnaire. Data collected through the structured questionnaire, 33 questions were prepared which was given to the 330 respondents on the basis of convenience sampling out of which 220 individuals filled questionnaire, the total of 200 questionnaires was included in the study after eliminating the incomplete questionnaire. Various factors are being explored from the literature and then with the help of factor analysis some of the most influential factors have been explored. Factors like overconfidence, optimism, cognitive bias, herd behavior, advisory effect, and idealism are the factors which influenced the trading decision of the investors the most. Such kind of a study is contributing in the area of behavioral finance as a trading decision is an important aspect while investing in the stock market. And this kind of study would be helping and assisting financial advisors to strategies for their clients in making the right allocation and also the policy maker and market regulators to come up with better reforms for the Indian stock markets.

Prior Return Effect in Indian Stock Market: An Intra-day Analysis

2015 ◽  
Vol 5 (1) ◽  
Author(s):  
Vanita Tripathi ◽  
Shalini Aggarwal
Keyword(s):  
Stock Market ◽  
Stock Prices ◽  
High Frequency ◽  
Good News ◽  
High Frequency Data ◽  
Short Term ◽  
Fund Managers ◽  
News Events ◽  
Return Effect ◽  
Indian Stock Market

In a first of this kind, this paper examines the issue of prior return effect in Indian stock market in intra-day analysis using high frequency data. We document that in Indian stock market, security returns exhibit a reversal in their direction within few minutes of extreme price rises as well as price falls. However the speed with which the correction takes place is slightly different for good news events and bad news events. Indian investors tend to be optimistic as they immediately bring stock prices up following unjustified price falls but take time to bring stock prices down following unjustified price rises. These findings lend a further support to short-term overreaction literature. More importantly, these findings serve as a proof of predictability of the direction of future stock prices and consequent returns on an intra-day basis. It forwards important investment implications for traders, fund managers, and investors at large.

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