What is it about?

The causal relationship between foreign portfolio investors and the Indian stock market suggests FPIs/FIIs are by characteristic return chasers and as consequence effect market returns adversely.

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Why is it important?

This issues is important because it helps understand the dynamics of FII investment behavior and returns of stock market.

Perspectives

A basic understanding of the issue of how foreign institutional/portfolio investors influence and get influenced by the stock market returns in developing economies such as India.

Dr Abhijeet Chandra
Indian Institute of Technology Kharagpur

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This page is a summary of: Cause and effect between FII trading behaviour and stock market returns, Journal of Indian Business Research, October 2012, Emerald,
DOI: 10.1108/17554191211274794.
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