Is Foreign and Domestic Institutional Investors Co-Integrate Indian Stock Market?
Abstract
This research is an attempt to analyse investment pattern of institutional investors and their impact on stock market volatility in India. Institutional investors are divided in FIIs (Foreign institutional investors) and DIIs (Domestic institutional investors). FIIs and DIIs are the major participant of stock market. they bear risk to generate return by investment in stock exchange. Indian stock exchange is one of the favourite market to invest saving or capital. To check and analyse the investment pattern of FIIs & DIIs and SENSEX of BSE (Bombay Stock Exchange), time series data of 13 years has been collected for the period of April 2007 to April 2020. To check the causality and relationship of market various statistical tools have been applied with the help of Eviews 9.0. Results shows the positive and strong relationship among the FIIs, DIIs and stock market return.