Impact Created by Foreign Institutional Investors and Domestic Institutional Investors on Indian Capital Market

The article relates the impact of Foreign Institutional Investors and Domestic Institutional Investors largely on the Indian Capital Market. For the purpose, two major stock indices National Stock Exchange and Bombay Stock Exchange that represent the Indian Capital Market have been taken. Monthly averages of NSE & BSE and Monthly FII's net investment and DII's net investment have taken over the period April 2007 to March 2015 in order to test the efficiency of Indian Capital Market. KarlPearson's Correlation Coefficient linear regression equations and Line charts have been used to analyze and determine the degree and direction of the relationship between the variables involved. The results suggest that the FII's do have significant impact on Indian Capital Market than DII's, which leads to the conclusion that Indian Capital Market is semi-strong form.