Journal of Commerce and Management Thought

  • Year: 2013
  • Volume: 4
  • Issue: 1

Foreign Portfolio Investment and Its Impact on Indian Capital Market

  • Author:
  • Tom Jacob1,, Geetha G Nair2
  • Total Page Count: 21
  • DOI:
  • Page Number: 147 to 167

1Assistant Professor of Marketing, Department in Commerce, Christ College Irinjalakuda-680 125. Dist. Trissur, Kerala.

2Guest Lecturer, Christ College, Irinjalakuda- 680 125. Dist. Trissur, Kerala.

Abstract

This paper examines the properties of foreign portfolio investment into India in the 1990’s, particularly during the period when liberalisation measures were implemented in the financial sector. It also analyses the structure, composition and trends of foreign portfolio investment in India.The focus of this study is foreign portfolio investment is compare with other foreign capital flows to check the volatility. Foreign portfolio investment has contributed to the development of the capital market of India and thereby the development of the economy as a whole.At the same time it is also well known that foreign portfolio investment has increased the volatility of the Indian capital market. Therefore this study helps to evaluate foreign portfolio investment is favourable or unfavourable to the Indian economy.

Keywords

Foreign portfolio investment, Economic Growth, Foreign Institutional Investors, Global Depository Receipts, American Depository Receipts, Offshore funds, volatility of capital flows