Foreign institutional investment signifies investments made by individual investors or companies in foreign lands. India have been witnessing a surge in FII activity since the opening of its capital markets. Owing to its high growth potential, India has become a favorite destination for FII activity. FIIs, convinced of India’s economic progress ad strong corporate earnings, are continuously investing in the country. Fast GDP growth has made India a preferred destination for foreign investors post the 2008 financial crisis. FII, because of its short-term nature, can have bidirectional causation with the returns of other domestic financial markets such as money markets, stock markets, and foreign exchange markets. Hence, understanding the determinants of FII is very important for any emerging economy as FII exerts a larger impact on the domestic financial markets in the short run and a real impact in the long run. The present paper is an attempt to find out FII Net Investment and Segment Wise Investment in India.
FII, Capital Market, SEBI, FPIs
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