Impact of Macro Economic Factors on FIIS Net Investment

Foreign Investment refers to investments made by residents of a country in financial assets and production process of another country. Foreign institutional investor means an entity established or incorporated outside India but proposes to make investment in India. It plays an important role in the advancement of information technology and the growing interest. FIIs have assured decent returns on their investments, enabling continuous and sustainable investment flows. A positive contribution of the FIIs has been their role in improving the stock market infrastructure and the SEBI has also confirmed its contribution towards its development. Though there are many economic variables which provide indication on the economic development of the country. Hence an attempt has been made to know the list of key macro-economic variables which have greater stimulus in determining FIIs flows. The various macro-economic factors of the countries also important in FIIs volume in a country. Hence, an attempt has been made to analyze the impact of macro-economic variables in Indian Stock Market.