answersLogoWhite

0


Best Answer

Foreign Institutional Investors (FIIs) play a significant role in the Indian Stock Market, including the movement of the Sensex. Here's an overview of their role and their impact on market dynamics:

Investment Inflows: FIIs are institutional investors from overseas who invest in Indian financial markets, including stocks. Their investment inflows can have a considerable impact on market liquidity and overall demand for Indian equities.

Market Participation: FIIs are active participants in the stock market, buying and selling shares based on their investment strategies and market outlook. Their trading activities can influence stock prices and contribute to the overall market sentiment.

Liquidity and Volume: FIIs often bring liquidity to the market due to the large capital they invest. Their participation can increase trading volumes, enhance market efficiency, and improve price discovery.

Market Sentiment and Confidence: FIIs' investment decisions and actions can influence market sentiment and investor confidence. Positive or negative outlooks from FIIs may lead to increased or decreased investor participation, impacting market trends.

Foreign Capital Flows: The entry or exit of FIIs' capital in the Indian stock market can affect the overall foreign capital inflows into the country. Changes in foreign investment trends can impact currency exchange rates and the balance of payments.

Sensex Movement: The Sensex, a widely followed stock market index in India, represents the overall performance of the Indian stock market. FIIs' buying or selling activities, along with other domestic and international factors, can contribute to the movement of the Sensex.

User Avatar

Stock Xpo

Lvl 5
10mo ago
This answer is:
User Avatar
More answers
User Avatar

Wiki User

12y ago

what is role foreign investers in Indian stock market

why it is used foreign investment Indian stock market

what is role foreign investers in Indian stock market

why it is used foreign investment Indian stock market

what is role foreign investers in Indian stock market

why it is used foreign investment Indian stock market

This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: Role of foreign institutional investors in Indian stock market with special reference to sensex tumbling?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

What is the full form of FII?

The full form of FII is " Foreign institutional investors".


The foreign institutional investors were first allowed to invest in India in the year?

sept 1992


Some examples of foreign institutional investors in India?

Britain's Tesco can be an example of foreign institutional investors in India. The company sealed an agreement with a retail unit of the Tata Group and become the first foreign supermarket in Indiaâ??s US$ 500 billion retail sector.


Impact of Foreign institutional investors on Indian economy?

The Indian economy has been impacted by foreign institutional investors over the years. This is especially true when it comes to business, commerce, and educational investments. The Indian economy has also seen a boom due to technological investors in the Southern part of the nation.


What is the impact of privatization on indian economy?

FI investment is a part of FDI. Foreign Institutional Investors are the instrument of FDI which specifically invests in finance sector of the economy. FI investment is a part of FDI. Foreign Institutional Investors are the instrument of FDI which specifically invests in finance sector of the economy.


Who are IPO's offered to?

The Public. Everyone can buy shares in an IPO. The types of investors who can purchase shares in a IPO are:Retail InvestorsHNIs (High Networth Individuals)CorporatesFII (Foreign Institutional Investors)


How fiis contributes in Indian stock market?

FII stands for Foreign Institutional Investors. They are companies from abroad that are investing in the stock market. They bring in foreign investments and exchange and infuse a lot of money into our stock markets.


Does Bulgaria have foreign investors?

Yes, there are lots of foreign investors buying things like property and creating jobs in Bulgaria.Yes, there are lots of foreign investors buying things like property and creating jobs in Bulgaria.Yes, there are lots of foreign investors buying things like property and creating jobs in Bulgaria.Yes, there are lots of foreign investors buying things like property and creating jobs in Bulgaria.Yes, there are lots of foreign investors buying things like property and creating jobs in Bulgaria.Yes, there are lots of foreign investors buying things like property and creating jobs in Bulgaria.Yes, there are lots of foreign investors buying things like property and creating jobs in Bulgaria.Yes, there are lots of foreign investors buying things like property and creating jobs in Bulgaria.Yes, there are lots of foreign investors buying things like property and creating jobs in Bulgaria.Yes, there are lots of foreign investors buying things like property and creating jobs in Bulgaria.Yes, there are lots of foreign investors buying things like property and creating jobs in Bulgaria.


What is the full form of FII and DII?

FII is "Foreign Institutional Investments" & DII is "Domestic Institutional Investments"


What could happen when foreign investors start investing in the US?

Foreign investors already invest in the US, and have since the founding of the country.


Are there minimal qualifications for investors in foreign exchange?

There are none.


What makes a country attractive to foreign investors?

Foreign investors look to invest in countries where they are going to get the biggest tax breaks and will be able to pay minimal wages to their employees.