1Associate Professor, Department of Commerce, University of Madras, Chennai, Tamil Nadu, India
2Research Scholar, University of Madras and Dy. Financial Adviser and Chief Accounts Officer, Southern Railways, Chennai
3Assistant Professor in Commerce and Financial Studies, Bharathidasan Universtiy, Tiruchirappalli, Tamil Nadu, India
India, which is the second fastest growing economy after China, has lately been a major recipient of Foreign Institutional Investor (FII) funds, drawn by strong fundamentals and growth opportunities. The late revival of monsoon, upward revision of economic growth from 5.8 per cent to 6.1 per cent, better-than-expected performance of companies in the quarter ended-June 30, the new Direct Taxes Code, leading to savings in the tax payer's money, and the trade policy with an ambitious target of US$ 200 billion exports for 201011, have all revived the confidence of FIIs investing in India. Both consumption and investment-led industries linked to domestic demand, such as auto, banking, capital goods, infrastructure and retail, are likely to continue attracting FII funds. This paper analyses the role ahead for the Foreign Institutional Investors in the present Indian Economic Scenario with the focus on the impact of FIIs on the Indian Capital Market and the Adequacy of Measures taken by the Government in the present Global Financial Crisis for the Investor Protection and to control volatile fluctuations in the Capital Market.
Foreign Institutional Investor, Nifty, SENSEX
