Foreign Institutional Investors and Mutual Funds in India-Their Interrelationship and their impact on the Indian Stock Market

Veena Vishwanathan, B Satyaprasad
2018 unpublished
The shifting of the financial markets from dominance by retail investors to institutional investors is a global phenomenon. The paper examines the role of two key institutional investor's viz., Foreign Institutional Investors (FII) and the Mutual Funds (MF) in India's financial market and their impact on the Indian stock market. Econometric test confirms that FII inflows have a causal relationship with MF inflows and Nifty and an inverse relationship with MF inflows. Furthermore, the paper
more » ... lishes that FII flows to India have a bi-directional relationship with both Nifty and MF inflows.
fatcat:uvncgvc5xzayxpyifk7umekpsi