Impact of Foreign Institutional Investments on Equity Stock Market of India

Capital inflows play a substantial role in developing countries. It used to increase accumulation and rate of investments to create conditions for more intensive economic growth. Institutional Investor is any investor or investment fund that is from or registered in a country outside of the one in which it is currently investing. Institutional investors include hedge funds, insurance companies, pension funds and mutual funds. The growing Indian market had attracted the foreign investors, which are called Foreign Institutional Investors (FII) to Indian market, and in this paper, we are trying a simple attempt to explain the impact and extent of foreign institutional investors in Indian stock market. International institutional investors must register with the Securities & Exchange Board of India (SEBI) to participate in the market.