A Study on The Impact of Institutional Investors Contribution on The Indian Stock Market with Reference to Nifty

This study is the analysis of stock market environment for retail investors based on the investments made by the Foreign Institutional Investors and market performance in the Indian Stock Market. Foreign Institutional Investors, Domestic Institutional Investors and Retail Investors being the participants in market, the platform is similar to all participants. It is a myth that retail investors are getting affected due to the transactions in large quantity of funds by institutions in the market. This paper is an attempt to develop an understanding of the dynamics of market participants such as Domestic Institutions and Foreign Institutional Investors’ investment behavior and its impact on retail participation. The study is conducted using NIFTY index movement with the contribution of DII and FII transactions from January2007 to August2015. The outcome of the study shows that there is a positive correlation between Institutional investments and market movement over the period, which suggests some positive signs for Retail Investors.