GIDC Rajju Shroff Rofel Institute of Management Studies, VAPI.
The volatility of stock market indicators goes beyond anyone's reasonable explanation. Any news or events pertaining to economy directly or indirectly brings lot of volatility in the market. Many factors like Inflation, activities of FII, Instability in political party, US recession, industrial growth rate etc affected the stock market in year 2008. The Indian stock market has grown and growing in terms of volume since last decades. One can give credit to FII (Foreign Institution Investors) for the growth in the market. It has contributed a lot and still contributing. But along with it has brought positive as well as negative impact in the market. An Analyst is of the opinion that FII has a direct relationship with the volatility in the market. When they turn into a net buyer, the market response positive i.e. market goes up and vice-a-versa. The paperfocuses on FII, their activities, contribution and how they are co-related with the volatility in the stock market. Here stock market-BSE sensex data from January 2007 to December 2009 is covered for the analysis purpose.
